Becoming a homeowner is a huge milestone in anyone’s life. It is a significant investment that requires a lot of preparations and research. This involves finding the right mortgage that suits your financial status, location, and other preferences. After the mortgage is secured and you’re finally a homeowner, the real work begins, especially if you’re working in skilled trades.
The truth is that owning a home is more than just paying mortgage payments. It comes with maintenance and other responsibilities that require careful planning and attention to detail. In this blog post, we will explore what to expect when owning a home as someone working in skilled trades.
Mortgage Payments
First off, let’s talk about mortgage payments. Mortgages are loans taken to finance the purchase of real estate properties, usually homes. Mortgage payments are typically made monthly – this includes both the principal and interest. The principal is the amount borrowed, while the interest is the fee charged to the borrower. In some cases, homeowners are also required to have mortgage insurance, which protects the lender in case the homeowner is unable to make mortgage payments.
The amount that homeowners pay for their mortgage varies from case to case. Factors such as the down payment, loan amount, interest rate, repayment period, and property taxes affect the total mortgage cost. Homeowners working in skilled trades need to be prepared for the financial obligations that come with mortgage payments.
Home Maintenance
After mortgage payments, home maintenance is the next significant responsibility for homeowners working in skilled trades. Maintenance involves upkeep, repair, and renovation of a home. This includes everything from fixing leaky faucets to major renovations such as a kitchen or bathroom replacement.
According to HomeAdvisor’s annual State of Home Spending Report, the average cost of home maintenance and repair costs per homeowner is $7,560 per year. This figure includes various expenses such as HVAC repairs, appliance replacements, and general upkeep.
As a skilled trades worker, you may possess the knowledge and expertise to handle some of these tasks. However, it may be best to seek professional services when dealing with technical issues such as electrical, plumbing, and structural problems. The bottom line is that home maintenance is an ongoing process that requires attention to detail to avoid further damage and increased expenses.
Property Taxes
Property taxes are additional costs that homeowners must keep in mind. They are taxes paid on the value of the property owned. Property taxes vary by location and are usually calculated by the local government based on the value of the property. In some cases, property taxes are paid monthly along with mortgage payments, while in others, homeowners pay them separately.
On average, property taxes account for 1.08% of a home’s value. For example, a property with a market value of $500,000 would attract an annual property tax of $5,400.
Homeowners Insurance
Homeowners insurance is another critical aspect that homeowners should consider. It is insurance that provides financial protection in the event of damage or loss of a home or property. This insurance typically covers damages caused by fire, wind, theft, and other unforeseen events.
The average cost of homeowners insurance in the United States is $1,312 per year. However, the premium cost may vary depending on various factors such as the location, age of the home, construction materials, and the homeowner’s credit score.
Bottom Line
Homeownership is rewarding and comes with various responsibilities that require attention to detail. As a homeowner working in skilled trades, you must be prepared for the financial obligations that come with owning a home. Be sure to budget for mortgage payments, property taxes, homeowner’s insurance, maintenance, and repairs.
With adequate planning, homeownership can provide a sense of pride and accomplishment worth the investment in time and finances. Do your research, seek expert advice when needed, and enjoy the benefits of homeownership.
> For one on one or group assistance with personal finance, STR recommends that you check out the following resources:
> Inaccuracies with Bureau of Labor Statistics (BLS) data: Many of our blog posts will quote BLS data. SkilledTradeRescue.com has been able to identify that data quoted specifically for Skilled Trades can be as much as 50% LOW in many USA labor markets. For more information on these inaccuracies please visit the STR national labor survey page at the link below. On this page there is a video containing the latest information at the top of the page as well as other information. If you currently work in skilled trades, PLEASE consider participating in our national labor survey.
