Expenses To Consider When Running A Home


Are you considering becoming a home owner rather than a renter?

Everyone is trying to save money wherever possible and with interest rates being low, this can make having a mortgage a lot cheaper than renting

If you have money sitting in savings gathering dust rather than interest, can you use it as your deposit?

There are extra costs to factor into running a home, not just the initial outlay if you own it, but long term maintenance and up keep too

Extra Costs

Insurance

Buildings insurance is essential, as your mortgage lender will insist you have this when you take out the mortgage

Contents insurance is optional, you are under no obligation to have this. However, consider having to pay to replace all your belongings if something happened to your home. Contents covers things like your carpets, and kitchen appliances as well as your personal belongings

I have sadly been in a situation before is where my basement flat got flooded, the first home I ever bought. The sewage drains broke and the entire contents of everyone else’s sewage was 5 inches high across my floor. It was a horrific and I was hysterical

If it hadn’t have been for my contents insurance, I would have had to pay to replace everything that was ruined myself. Thankfully I had family who I lived with while it was all repaired and friends who helped me with my insurance claim. This took nearly a year to repair and get back to it’s original state

Some people think that it will never happen to them, they don’t need insurance. However, no matter how careful you are, things can become broken, or accidents can happen a lesson I have lived first hand

The small monthly premium is worth every penny

Average monthly cost is £40 for building and contents

Water

You have to pay a water bill, the same as renting

However, if your pipes burst or you get a leak, it is down to you to pay to fix and repair it

The call out charge for a plumber can be costly, without whatever work they need to do to fix it

Always make sure you know where the turn off point for your water mains are, this will prevent a leak from causing more damage while you wait for the professionals

Average monthly cost for water bill £30

Electric

Electricity is obviously something you need in your home as well

Have you ever considered how much electricity you use in your home, or how you would cope without it?

If you have a problem with your electrics, it’s best to get someone out as soon as possible

Don’t try and play around with it yourself to save money. Electricity is extremely dangerous if you do not know what you are doing

Average monthly cost for an electricity bill is £50

Gas

Not all home use Gas

Blocks of flats for safety reasons only have electricity

Central heating in a home which you have a boiler for will be gas. A lot of kitchens in homes use a gas hob to cook with

Gas is an extremely combustable matter and much like electricity needs to only be worked on by professionals

Average monthly cost for a gas bill £40

There are many purchases in life I like to save money on and I will always shop around for the best price. Energy bills you have the right to choose your supplier, make sure you are not paying more than you need to

Insurances are down to you to choose the most compatible one for your needs. Always shop around for them too as you can save a lot of money especially on renewals

Sadly, water you do not have any choice. Your water supply charge is dependant on the area you live in. You can however, have a water meter installed to insure you are only paying for what you use

Having an understanding of the financial commitments to running a home will help you make better informed choices


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Expenses To Consider When Running A Home


5 Comments

  1. 17/09/2018 / 05:36

    I totally agree! I’ve been planning to move out of my parent’s house but i’ve been thinking a lot about all these expenses. I’ve also been thinking if i’ll be able to handle everything on my ow and whatnot. Anyways, thanks for sharing these points 🙂 They’re really helpful for me :0

  2. A S,Edinburgh
    05/11/2018 / 22:18

    Excellent advice, thank you. I completely agree about insurance, all of it is so important.

  3. Kathleen marsden
    10/11/2018 / 14:38

    Fantastic advice here. I’ll keep it in mind for my move

  4. bev
    12/11/2018 / 08:29

    It’s surprising how it all adds up or how a surprise disaster can throw you!

  5. Lorna Ledger
    12/11/2018 / 19:13

    Yep, totally agree, we use the two spare months that you get off council tax as a little emergency fund

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