Hidden Costs of Owning your Home

December 13, 2017

Owning your home is one of the costliest investments you‘ll ever make. In addition to the expected costs you need to pay, a number of unexpected hidden costs will come along the way. And while owning a house is better than renting one on the long term, you need to be ready to take this step, keeping in mind the additional investments you‘ll be required to make, and whether you will be ready for it.


Moving Cost

Once you buy your dream home, it is time to move in. You will need to call a professional moving service to help you pack and transfer you furniture, or maybe you would rather buy new furnishings, which means you will have to pay for new appliances, electronics, bedrooms and sitting rooms.


Home Insurance

Considering that your new house is the costliest investment you‘re going to make, you‘d better get a home insurance for protection against robbery, fire, or other dangers.


Maintenance

If you are buying a used apartment, you‘ll need to pay for required maintenance even before you move in, these will include air conditioning, pipelines, electricity works and painting the walls. Even if you are moving to a new building you will still need to pay for periodic maintenance works, to keep it in good condition.


Registration Fees

Registration, money transfer and ownership transfer, these are all extra fees you‘ll be required to pay as soon as you sign the contract. Registration fees can amount up to 5% of the total value of your property.


Taxes

Because of the new taxes awaited in Saudi Arabia with the beginning of 2018, you will need to pay property taxes, and this means additional 5 percent of your property value paid in the form of taxes.


Utility Bills

If you are moving to a larger property, you will notice an increase in utility bills. Your electricity bills will increase due to air-conditioning and lighting.


Building Management

The costs you will be required to pay are not limited to inside your home but also to the community you live in. You will need to pay your share for building management and maintenance. If a third party is managing the security and maintenance works, you will need to pay an annual fee to cover these services, or you will need to pay for the building council for maintenance and cleaning works. You will also need to pay municipality fees that vary according to where you are living.

Al Rajhi Bank provides a number of home finance options, including Home and More. Now, you can get the financing of personal and home in one package at the same time to finance the purchase of a house or apartment and get sufficient financing to achieve your dreams or fulfill your other obligations.