You saved all your money for a down payment on a house and calculated the costs of the mortgage but wait just a minute…owning a home also comes with several hidden costs. Those costs can add up. So before you buy your home, here are additional home-related expenses you’ll want to include in your budgeting:

Real Estate Taxes

Often your real estate taxes are included in your monthly mortgage payment but in some instances you may pay them directly. The amount of taxes you pay varies depending on the value of your home’s and the tax rate in your community.

Private Mortgage Insurance

Your monthly mortgage payment may also include PMI (private mortgage insurance). Lenders typically charge a PMI if your loan exceeds 80 percent of the sales price.

Homeowners Insurance

Most banks require that you hold homeowners insurance. Homeowner’s insurance protects from damage to the home from things like fire, theft or weather. Just because you have insurance doesn’t mean there are no costs to you remember to set aside your deductible.

While owning a home does have hidden costs the gain of homeownership is always more than the cost.

 

Charitable donations are on the rise with more and more Americans giving to charity. While you may not donate to charity just for the potential tax deduction, it can be a bonus. You should always try to donate in a tax-efficient way.

Here are a few helpful hints regarding charitable gifts:

Know who you are donating to: Only donate to organizations with tax-exempt 501(c)(3) status. These are the only deductions that are deductible on your tax return. Before you donate to a charity check to verify its 501(c)(3) status. You can research tax-exempt organizations on the National Center for Charitable Statistics website.

Avoid capital-gains tax-Taxpayers can avoid paying the capital-gains tax by deducting contributions of various kinds of property. It should be noted that physical property worth more than $5,000 will need an appraisal of its value to claim the deduction.

Give it to the kids. Taxpayers can gift up to $14,000 annually tax-free. A gift to your child can be an easy way to reduce your income and tax bite. The gift recipient is liable for tax on any gifts.

While paying taxes is inevitable, giving to charity may help reduce what you need to donate to Uncle Sam.

Did you know that approximately three-quarters of the housing in the United States built before 1978 contain lead-based paint? That is about 64 million homes.  Lead paint can pose little risk, but it can also cause serious risks when it isn’t properly maintained and managed.

There are approximately 1.7 million children that have blood-lead levels above safe limits. Lead poisoning can cause permanent brain damage and damage other organs. It can also cause abnormal fetal development for pregnant women. Lead comes into bodies by breathing or swallowing lead dust, soil or paint chips.

The Residential Lead-Based Paint Hazard Reduction ACT of 1992 directs the Department of Housing and Urban Development (HUD) and the Environmental Protection Agency (EPA) to ensure people receive information needed to protect themselves from lead-based paint hazards.

In 2008, EPA issued the Renovation, Repair and Painting Rule. It requires that firms performing renovation, repair, and painting projects that disturb lead-based paint in pre-1978 homes, child care facilities and schools be certified by EPA. If you are a homeowner performing renovation, repair, or painting work in your own home, EPA’s RRP rule does not cover your project. For information on the RRP click here.

For home buyers federal regulations require that home sellers provide lead disclosures to home buyers who are purchasing a home built before 1978. Buyers have 10 days to conduct a lead-based paint inspection or risk assessment at their own expense. The regulation does not require any testing or removal of lead-based paint by sellers.

 

Tagged with:
 

If you are looking for a piece of property that you and your family can call home, there are a few important factors to consider beforehand. First, shopping for homes does not have to be difficult if you do it online. One way to do that is by using the “Search Properties” link above. It will help you to find the perfect home in the area of your choice. You can also Sign up for “New Listings Email Alerts” that will email you every day with new listings, price changes, back on the market and open houses. You will have the ability to search the MLS and get the addresses of properties, view full listings sheet, show where the property is on a map, etc. You can keep the homes you like in a saved folder to view at anytime or email them to a friend or colleague.

This website also will allow you to sign up for MLS Property Messenger which will alert you of a new property as soon as it comes on the market. Be the first to know about new listings or price drops with the great service.

In the end, you and your family want to be as comfortable as possible in your new home, and so it is important that you find the perfect environment for your property. Once you begin shopping for homes, try to search for property that is located in a good area, and more importantly, the property should be close to your work and to your children’s schools, as this in turn will ensure that commuting does not take too much out of your time. Do not focus on pricing alone, as this will limit your search. Instead, focus on how much room you are looking for, and make sure that these rooms are spacious enough so that no one feels crowded. Pricing can always be negotiated down the road, and you will find that if you negotiate a price on a home that you truly do like, then you will feel that you got a great deal. In the end, you and your family want to feel comfortable in your home, so it is important to begin your search on the right foot.

Finishing Your Basement

On January 4, 2015 By admin

Repurpose Old Items

On December 28, 2014 By admin

Home Improvements Before Selling

On December 21, 2014 By admin

Navigating Senior Housing

On December 14, 2014 By admin

Going from Renter to Owner

On December 7, 2014 By admin
Set your Twitter account name in your settings to use the TwitterBar Section.