Expenses Which Homeowners Pay That Renters Do Not

Being a homeowner comes with a range of expenses and hidden costs, many of which do not happen to apply to renters. If you are currently a renter looking to become a homeowner, there will be a number of expenses you will need to take into account which you would not have needed to before. These are applicable regardless of location, whether you’re looking to buy a 2 BHK flat in Navi Mumbai or elsewhere.

Homeowner Costs Which Aren’t Applicable to Renters

• Property Taxes

The first and foremost expense that any homeowner has to deal with is property tax, which is something that does not have to be paid by a renter. These are taxes which are only levied on owners of property by the relevant municipal authority, and it eventually contributes to the maintenance of various public amenities and infrastructure of the area. This includes things such as road repairs, street lighting, sewage, and the cleaning and maintenance of public places such as parks and streets. 

Property tax is not something that is exclusive to residential properties, and is levied on the owners of any form of real estate, including commercial structures as well. The actual amount of the property tax that has been levied is typically determined by the overall value of the property in question.

• Homeowners Insurance

While a renter will naturally be eligible for renters insurance, the home insurance will be paid by the actual owner of the property in question. This insurance provides for the structure of the property itself, as well as the contents which are present within the home. This is a very crucial layer of financial protection for the homeowner in the event of an unfortunate incident, thereby helping cover the overall value of the property. In most typical homeowners insurance policies, if the structure of the house has been damaged and any of the contents within it have been lost, the insurance can be used to compensate for the costs of the repairs and rebuilding.

• Maintenance Costs

One of the major benefits of only renting as opposed to being a homeowner is the fact that homeowners have to deal with any and all maintenance needs of the property, something that renters are not required to do. Whether this is fixing any appliances or electrical fixtures that are damaged or broken, routine maintenance of air conditioning or anything else, the homeowner is typically the person who must handle these costs. These responsibilities and expenses will not fall on the renter, whether they are for expected tasks or for unforeseen repairs. If you’re looking to become a homeowner this will be one of the many costs you will have to bear, whether you’re looking to invest in 2 BHK luxury flats in Mumbai or property elsewhere.

• Real Estate Fees

When you buy a home, you do not just have to pay the actual price for the property itself, and there are also various real estate agent commission costs and legal expenses that may be involved in the purchase process. The legal expenses include costs for processes such as the transfer of titles, closing fees, along with a range of other possible expenses. Both the buyer as well as a seller would need to pay for the transfer of the titles, and it is also highly recommended to enlist the services of a legal expert for this and other legal processes. While this is another cost to take into account, it will be well worth it, as you will want such a process to go as smoothly as possible.

• Mortgage

This is one of the more obvious costs that have to solely be paid by the homeowner and not by the renter. It’s worth noting that the interest rates on these mortgages will typically vary drastically from one loan to another and also heavily depends on the actual terms and tenure of the loan. The accumulated amount that will have been paid over the course of the tenure will also depend on the type of interest rate that the homeowner had opted for when applying for the loan, with the two types being fixed and floating interest rates. Fixed interest rates will remain the same, as the name suggests. On the other hand, floating interest rates are those that are not static and are prone to rise or fall over time.

As you can see, there are a lot more facets that one would need to pay attention to as a homeowner than they would merely as a renter. While it can prove to be a bit tedious, the aspects and costs mentioned in this blog should be enough to give you a better idea of the kind of expenses you would be looking at as a prospective homeowner, whether you’re looking to invest in ready possession flats in Lower Parel or property anywhere else in the country.