Been saving for too long to buy a new home? You might need to save a little more to make up for the so-called hidden costs of buying a house so you won’t be surprised in the future. The journey in achieving your dream of owning a house and lot can take a while, but it’s all worth the wait, don’t lose hope. When buying real estate in the Philippines, you must put together an amount that is greater than the property’s price because the price of the property itself isn’t the only cost you will pay, it comes with other fees and taxes. They are so-called hidden costs because they’re usually not mentioned not until the transaction begins. Although some costs are to be shouldered by the seller, still there are other fees for the buyer to pay.

If you're a first-time homebuyer, don't be surprised by how much it costs to buy and take care of a home. Some costs that come along with buying a home are predictable, such as your mortgage payment. But then there are other costs of owning a home that may take you by surprise. These may include property taxes, insurance, utility bills, and more. U.S. homeowners can spend thousands of dollars per year on these hidden home purchase and maintenance costs.

To help you prepare financially for the hidden costs of owning a home, like if you’re planning to buy your dream house and lot from BRIA Homes, below are some of the additional charges involved in real estate. However, keep in mind that the list below is just a general guide and the total cost of acquiring real estate will vary depending on the circumstances involved in the transaction, such as how you finance your property will matter, to help you get your finances ready. It is still best in your interest to consult with professionals to get a bit more accurate and professional advice.

Buying a house isn’t like picking up a piece of clothing in a shop, checking the price tag, and then paying.

When you’re thinking about buying your first home, it might seem like it’s all about the down payment. You save for years to have it, and you base a good portion of your home-buying budget on it.

Next comes the mortgage. How much will you owe each month in principle, interest, taxes, and insurance? How does that compare with how much you currently pay as a renter?

If you’ve figured out how to tackle those two huge expenses, you might think you have it made in the shade. With lemonade! But the hard truth is that those are far from the only expenses you’ll incur when you buy a house.

Earnest money

It is customary that sellers to ask for a security deposit, which is also called earnest money. The buyer pays the earnest money to demonstrate his or her eagerness or serious interest in buying the real property. It is asked by the seller before the conclusion of any deals, it is like a reservation fee, however, the latter applies more to the purchase of pre-selling projects. Further, it also puts the real property on hold from other interested buyers until all terms and conditions are agreed upon by the parties. The earnest money shall also form part of the purchase price in consonance with the law on sales in the Philippines. When the buyer and seller sign an earnest money agreement of contract to sell, they are legally bound to consummate the contract to sell and buy the subject property based on the terms of their agreement. At present, there is no hard and fast rule regarding the amount of earnest money. The amount is oftentimes negotiated between the buyer and seller, including the refund terms in case the buyer won’t pursue buying the property.

Home Maintenance

You should plan on paying at least 1% of your home's value in upkeep costs every year, according to the 1% rule. However, that number will vary. Some of the most common maintenance issues are house cleaning, yard care, gutter cleaning, and pressure washing.

Prices can vary widely based on the area. Your agent and home inspector can help you figure out what routine jobs will cost in your area when it comes to first-year costs. Sites such as Angi and Thumbtack can also help with estimates.

HOA Fees

If you purchase a home in a neighborhood, a townhome, or a condo, you may need to pay a monthly fee to the neighborhood homeowners association (HOA). These fees can vary dramatically based on where you live and the type of home that you own.

“If your property is located within a homeowners association, there are often fees to set up your account with that association,” Goldstein says. “There are also the prorated fees being collected to reimburse the seller for any portion of your ownership that they have already paid and possibly your first month of dues will be on your settlement statement.”

The HOA fees cover a variety of items like maintenance in and around your community, snow removal, community pool maintenance, and other neighborhood fees.

Heating, Ventilation and Air Conditioning (HVAC) System

The systems in your home that keep it cool in the summer and warm in the winter will need maintenance and at some point, need to be replaced.

During the year, changing the air filter in your air conditioner and the furnace will help extend the life of the machines and help them to run more efficiently–helping to save you money on your utilities.

It’s recommended that HVAC systems are inspected once a year. Many companies offer service plans that include these inspections and maintenance calls for a yearly fee.

Electrical System

Arc faults, faulty wiring, and electrical shorts cause a fair number of electrical fires that burn down homes. All homeowners should have a basic understanding of how electrical systems work to keep homes and families safe and understand the limitations of their skills.

Whenever there's a systemic problem or you're doing significant rehab work, call in the pros—trusted, trained, and licensed electricians to make sure things are installed correctly and according to current codes and safety standards.

Homeowners Insurance

If you're taking out a mortgage, you'll be required to have homeowners' insurance. But even if you pay cash for your home, you should have it anyway. You should aim to get a replacement cost policy. This type of plan will cover the cost of replacing the items that get stolen or damaged in a fire, rather than one that gives you the depreciated value of the items lost.

According to the Insurance Information Institute, the average yearly cost for home insurance was $1,272 in 2019, the most recent year with data. Premiums will vary based on your area and the value of your home. 4 You can save yourself a large amount by shopping around both online and in person. Ask about what discounts you can get, including discounts for security systems and bundling coverage for your home with your auto policy.

It's also important to be aware of the things home insurance won't cover. Policies tend only to protect your home and the items within. But if you're buying a condominium, the co-op might require a liability rider for accidents on any shared property. If you're in a flood zone or an area with a high risk of earthquakes, you'll need more protection.

Community

Sometimes finding a home that has the amenities you want for the price you can afford means moving to a different part of town—and leaving your neighborhood friends behind.

Bera, who opted to spend a bit more to live near friends when she recently moved to Austin, TX, counsels her financial planning clients who are buying their first homes. All too often, people don’t consider the effect of moving miles away for the perfect house.

“The big thing I see is how much it changes their lifestyle. It might not be as convenient to do the activities they love or see their close friends, so they miss out on a lot of these things,” she said. “They have to create a whole new community. One thing we often don’t ask ourselves is: What is the price of community?”

The Roof

A roof that is missing a few shingles or is showing its age in a few spots can be a cosmetic issue that homeowners will want to take care of right away. However, a leaky roof can wreak havoc on the outside of your home, the inside of your home, and your budget.

While most roofs have a lifespan of about 25 years, damage from wind, storms, or water can set you back thousands of dollars.

• NOTE:

• Homeownership comes with extra and unexpected expenses to watch out for.

• Some costs are strictly financial and beyond your control to a large extent.

• These include property taxes and homeowners' association (HOA) fees.

• If you live in a natural disaster-prone area, homeowners' insurance may cost more than you expect

• The costliest part of homeownership typically relates to the upkeep and repairs of the roof; the HVAC, plumbing, and electrical systems.