Buying a property is expensive!  In fact, most people have to save and budget for years to be able to afford the house or piece of land they want.

New investors in the real estate market however don’t realize that the final payment on the property is just the beginning of more expenses. Here are some unforeseen costs of property ownership that you should consider before you start making payments for your dream home.

Unforeseen Costs Of Property Ownership

1 – Repairs and Remodeling

It is rare to find a perfect home. After purchasing the property, you’ll probably have to invest more money into renovating it. This is especially true for older houses.

You may also have to make restorations to the roof, flooring, and deck within the first few years of owning the home. Newer houses sometimes need to be remodeled and this could mean taking down walls, redoing the kitchen, or setting up energy-efficient equipment.

Make sure you get a home inspection estimate before buying the house. This will give you a sneak peek of the amount you’ll have to spend on these repairs.

2 – Closing Costs

You should be ready to pay up between 2% to 4% of the total cost of the estate in closing cost.1 These fees mainly include payments such as;

  • Tax reimbursements for future taxes paid by the seller
  • Lawyer fees
  • Loan application fees
  • Title deed recording fees
  • Payments for the title insurance
  • Insurance escrow payments

The amount to be paid varies from state to state, and so you should do your research as you budget for a house. You should also negotiate to get the best deal, as this will decrease your overall budget for the property acquisition.

3 – Basic House Appliances, Equipment, and Toiletries

Amidst the excitement of buying a new property, most new owners forget to budget for the normal everyday items they need to maintain it. As you plan to move to your first house, don’t forget items such as curtains, shower-heads and bulbs. They may not cost much individually, but they’ll add up to a lot when you have to buy them all at once.

Maintenance equipment like lawnmowers, rakes, shovels and irrigation equipment should also be considered. Other tools you need, especially if you plan on doing the property remodeling yourself, include hammers, screwdrivers and paint.

Make sure that your kitchen and bathroom are well stocked with basic toiletries and utensils.

4 – Homeowner Association Fees

If you are buying property in a planned community or a condominium area, you should look out for hoa fees. These payments are periodically made to the association to cover shared community costs such as landscaping, garbage collection and security.

5 – Property Taxes

These are local government fees charged to the owners, based on the value of their property.2 The rate of the taxes vary between states or municipalities, so ensure you find out how much you’re supposed to pay.

Keep in mind that property taxes are still payable even after making full payments on your property.

Before paying your first deposit for a property, it is important that you find out all the costs you’ll need to pay on it. Researching extensively on these hidden fees may be expensive and time consuming, but is ultimately important for your financial planning.

Your property is a huge asset. Talk to one of our expert advisors about the CalPATH Home Loan Program and how you can use your mortgage to increase your savings.



“About Mountain West Financial and the CalPATH Home Loan Program

Mountain West Financial is the exclusive lender offering CalPATH, the #1 home loan program for Teachers, Police Officers, Firefighters, and other public employees who serve our local California communities.

You may contact our CalPATH Hotline @ 800-310-7577, seven days a week from (8:30 am to 8:00 pm). A CalPATH advisor will be standing by to answer (any & all) questions you may have about the home buying or refinance process.

We look forward to working with you soon!


Joe Moore – Branch Manager”


Links To External Sources Used

  1. How To Negotiate Closing Costs On A Newly Constructed House –
  2. What Is Property Tax –