Nobody warns you about year one, so here it is.
The keys are not the finish line. They are the start of the expensive part, and almost nobody budgets for it. Everything that used to be the landlord's problem is now simply your problem.
What actually lands: repairs nobody flagged at inspection, property taxes and insurance and HOA increases, and the furniture your old place never needed. A working rule is to budget about one percent of the property value each year for upkeep.
I am not talking you out of buying. I am talking you out of being surprised, because surprise is what turns a good purchase into a stressful one. Expected costs are a budget. Unexpected costs are a panic.
So keep a cushion after closing. The buyers who enjoy year one are the ones who did not spend every last dollar getting there.
The short version
- They are the start of the expensive part.
- Almost nobody budgets for it.
- Repairs nobody flagged at inspection.
- Property taxes, insurance and HOA rises.
- The furniture the old place did not need.
- Budget one percent of value a year for upkeep.
- Expected costs are budget. Unexpected costs are panic.
Talk it through with Kini
Kini will run it with you on your real budget, anywhere in Orange, Los Angeles, Riverside or San Bernardino County. No charge and no pitch.
Book a consultation or call or text (323) 320-1725. See this month's numbers for your county.