Whether you have already found a house that you want to purchase in St John or if you just started looking, you need to remember the many expenses that come along with purchasing a property. Many people tend to forget about the non-banking expenses associated with new purchases.
Home Inspection
Many sellers and buyers forget that home inspections are essential when purchasing a property. It is important to find a qualified inspector to determine if there are any issues with the house, so you can evaluate the cost of necessary repairs after purchasing the home.
Attorney and Notary fees
When purchasing a property, you will need to pay any notary and attorney’s fees that come along with processing the paperwork and getting documents notarized and verified. The attorney will help to make the purchasing process easier.
Property Taxes and Insurance
After you purchase your property, you need to consider the property taxes you will need to pay annually. The best way to prepare for these expenses is to look at the property tax rates from the previous years. Though the taxes may vary annually, these documents will give an estimate of what you need to pay.
Insurance is necessary to protect your home and your belongings, and is a requirement to get a mortgage. Be sure to choose an insurance company that allows you to construct a personalized insurance policy.
Fluctuating Property Value
It is important to remember that the real estate market fluctuates often and when you purchase a property, the value will change. While this may not be a direct expense, you need to account for the possibility of devaluation.
Ongoing Expenses
When you create your budget, you want to consider the cost of setting up a new home. These include getting utilities turned on, decoration expenses, and any new furniture purchases. Most homes are sold fully furnished but you’ll want to add your personal touch to your island residence, even if it only involves artwork and decorative touches.
Ongoing expenses refer to the maintenance costs of owning a home, including utilities, taxes, repairs, and general upkeep costs, such as those mentioned earlier in the article.
Buying a home includes much more than the purchase price. Be sure you understand all the costs, so that there will not be any surprises and you can enjoy getting settled into island life.