There was an interesting article in the Los Angeles Times today which spurred me to write about the hidden costs of homeownership. Los Angeles first-time home buyers may not be aware of what is involved over and above the amount they have in mind after their lender presents them with based on the PITI, principal, interest, taxes and insurance.
There are many other costs to consider and Los Angeles first-time home buyers should estimate an additional 1% of the home’s value per year in additional costs.
These include utilities: gas, water, electricity, cable, telephone.
If you are thinking of buying a condominium of a home in a PUD (planned unit development) then there will be association dues, anywhere from the mid $100s to the $500s for an average unit.
Also, money is probably going to be spent on renovations, appliances and furniture.
And then there is maintenance. An unknown.
So, Los Angeles first-time homebuyers, before jumping in over your head and being house poor, make the necessary adjustments for the amount of house you are going to be able to afford.
