Own vs. Rent?

I came across a great article today from Trulia discussing the Top 5 Hidden Costs of Owning and the Top 5 Hidden Costs of Renting. It's great information, and I thought I'd pass it on! Today will be the owning portion of it and tomorrow will be about renting! Enjoy!

1. Special Assessments. HOA dues to maintain the complex come as no surprise to condo owners, but hefty special assessments to make unexpected (and unbudgeted) repairs to the roof, windows, boiler, or even foundation often catch unit owners unawares. Even if your home doesn't belong to an HOA, don't be surprised to see special assessments tacked on top of your property tax bill, covering public services including things like street lighting, tree trimming, pest control, libraries, and even schools.

2. Utilities and services you didn't need while renting. Many renters have never had to pay for things like gas, garbage, water and pest services, and they've also looked to their electric, gas, garbage, alarm, water, pest, home warranty - which mitigates larger surprise costs of unexpected major repairs, gutter cleaning/maintenance, snow removal/winterizing, etc.

3. Private Mortgage Insurance. Today's savvy homebuyers are well aware that they'll have to pony up for private mortgage insurance, or PMI, if they're putting less than 20 percent down on their mortgage. But the cost of PMI has spiked over the last year, and the amount definitely catches buyers off guard.

4. Penalties and fines. HOA rule violations, like parking in the wrong spot, installing hardwood floors in an upstairs unit, or painting your home a forbidden hue can result in surprising fines, on top of the costs of remediating the issue. Even single-family homeowners can get ticketed and/or fined by their city or town for violations like having overgrown weeds or other building code violations - especially those which create fire and safety hazards.

5. Items you didn't need while renting, but you do as a homeowner. This varies based on your climate and the type of home you own, as well as on the services you outsource, but can include landscaping equipment (e.g., lawn mower, snow/leaf blowers), washer/dryer, fridge, window treatments, and light fixtures.


http://www.trulia.com/blog/taranelson/2011/01/hidden_costs_of_owning_and_renting_hold_until_rvb_012411?ecampaign=cnews201101C&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F01%2Fhidden_costs_of_owning_and_renting_hold_until_rvb_012411