Most people dream of living in a luxurious, upscale villa, but hidden costs and unexpected expenses can hinder their dreams!
Property Tax
Tax rates vary significantly between states. For example, the difference between California and Texas property taxes can be several times greater! Be sure to research local tax rates before buying a home.
Home Insurance
Insurance costs can be shocking, especially in areas prone to natural disasters (such as hurricanes in Florida and floods in Texas).
HOA Fees
If you're buying a condo or townhouse, you can't avoid HOA fees! They range from $200 to $500 per month, and can be even higher in upscale neighborhoods.
Maintenance Costs
Most homes in the US are sold vacant, so budgeting for renovations and furnishings is crucial. Lawn mowing, pool maintenance, and other expenses are also ongoing expenses.
Closing Costs
These include legal fees, appraisal fees, and title insurance, typically costing 2%-5% of the purchase price. Don’t underestimate this amount of money, it adds up to a lot.
Professional advice
It is recommended to reserve 3%-5% of the house price as a hidden cost budget before buying a house.
When choosing a property, be sure to check the local property tax rate and HOA fees to avoid excessive pressure later.
