Expenses to Consider When Upgrading Your Home
For many, homeownership often includes the desire to eventually purchase a larger dream home. Whether you are thinking about upgrading to gain more room for yourself or a growing family, it is important to consider all increases, not just square feet.
- Taxes and insurance – Property taxes are based upon the value of the home and the tax rate for the area. A larger home means a higher property value, which results in higher taxes. Additionally, homeowner’s insurance is also based on the value of the home.
- Utilities – a larger space requires more energy to heat and cool. According to the Department of Energy, a family in the United States already spends about $2,000.00 per year in energy costs1.
- Maintenance and repairs – a basic rule of thumb is to expect to spend 1% of your home cost each year for repairs and maintenance, which includes roofing, lawn care, and cleaning.
If you are considering an upgrade, note the operating and maintenance budget changes that accompany the purchase. When it is time to purchase your dream home, contact our office for high quality representation throughout the process.