How Much Does Owning a Home Cost?

by Crescent City Living

hidden costs of home ownership

Beyond making your monthly mortgage payments, have you considered the additional costs of owning a home?

We never want our clients to be surprised by anything when moving from renter to homeowner, so here are a few items to consider before buying your first home in New Orleans.

Property Taxes

If you have a mortgage, your property taxes will be included in your monthly payment. But, if you’ve paid cash (or paid off your home) you’ll be responsible for paying the annual property taxes. In New Orleans, property taxes are paid in advance, so the bill you receive in 2022 will be payment for the 2023 taxes.

Flood and homeowner insurance

Just like property taxes, if you have a mortgage, your insurance premiums will be paid through your escrow account. The annual premiums, divided by 12, will be added to your monthly house payment until the mortgage is paid. If you’ve paid cash, don’t forget to budget for the annual bill when it comes due each year.

Improvements

Hate the wallpaper? Want wood floors instead of carpet? Improving your home is an excellent way to add equity, but some projects, like full kitchen and bathroom remodels, can be quite costly.

Maintenance and repairs

Remember when you would just call the landlord because the sink backed up or the dishwasher was leaking? You’re the landlord now, so make sure you have a cushion for unexpected repair expenses.