The expenses of owning a home go beyond the monthly mortgage and utility payments, and can create financial difficulties, particularly for first-time home buyers who have minimal cash reserves. Mechanical failures in the plumbing, electrical and heating systems seem to occur at the worst possible times, but have to be repaired. If you have purchased an older home, complete replacement of water heaters, furnaces or kitchen appliances may be needed. You should have drawn up a budget before beginning your search for a home, making allowances for such expenditures. If you did not, it is time that you begin to accumulate adequate reserves to deal with such emergencies.
In a newer property, your immediate expenses may be confined to landscaping, interior decoration and furnishings. Under normal conditions, mechanical items and appliances will be under warranty for six months to a year and will not require major expenditures, but may need minor repairs.
In an older property, replacement of major items can be very expensive. You should have determined the age of the furnace, hot water heater, air conditioning system, kitchen appliances and the roof. Your home inspector's report probably noted the ages o f these major items. If they are older then half their expected useful life, you will need to plan for the costs of the replacement.
