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Moving to the Windy City? Thinking of becoming a homeowner in Chicago? Congratulations! But before you write your John Hancock on the dotted line, it’s important for you to understand more than just the mortgage cost associated with owning a home. There are also some other fees, taxes, and expenses that come with being an owner of a Chicago property. Let’s take a look at what you should expect.
Taxes and Assessments
Property taxes are set by the local government, and they are assessed annually based on the home’s value. This is one of the largest ongoing costs when it comes to owning a home in Chicago; they can range anywhere from 0.7%-3% of your home’s market value, plus any additional taxes imposed by special districts. Property tax assessments in Chicago can also increase over time as your home increases in value due to renovations or appreciation. Be sure to factor this into your budget when you're searching for a new place to call your home.
All homeowners must carry basic homeowners insurance coverage when they purchase their new abode – usually around $1,000 per year, depending on where you live and how much coverage you choose. In addition, if you have valuable possessions like jewelry or artwork, you may want to consider adding an umbrella policy for extra protection beyond your standard plan. Be sure to shop around so you can find the best rates before signing on with any specific provider!
Utilities such as gas, electricity, water, sewage, and garbage collection have to be paid for each month. If you rent, these costs will sometimes be included in your lease; but when you are a homeowner, they are your responsibility. Additionally, some areas may require additional services such as cable television or internet access, which can add hundreds more per year in expenses. It’s important to do research into what services may be required and how much they cost before buying a house so that you don’t get hit with unexpected costs after moving in.
Maintenance and Repairs
The costs associated with maintaining and repairing your property depend largely on the age and condition of your house prior to purchase. Older homes will require more frequent maintenance than newer homes, so keep this in mind when making your selection! Additionally, if there are any major repairs needed (such as roof repairs or plumbing work), those costs can add up quickly; so be prepared to budget appropriately each month for these types of expenses.
Buying a new home is one of life’s biggest milestones – and a very exciting one – but it comes with many responsibilities beyond just paying your mortgage every month. It's important for potential buyers to understand all of the additional costs associated with owning a home in Chicago, as well as how much these costs may fluctuate over time. By understanding these upfront costs, you can ensure you are budgeting correctly each month and adequately protecting your investment. Best wishes on your house hunting!