Presentation on theme: " It’s a great feeling when you buy your first house, but it comes with expenses that you didn’t have to worry about when you rented Despite having more."— Presentation transcript:
It’s a great feeling when you buy your first house, but it comes with expenses that you didn’t have to worry about when you rented Despite having more expenses, it’s worth it:
The price of a house can be affected by many things, two big ones which are: Location Size Both of the above factors determine the property tax The more expensive a house, the more property tax you have to pay
Lois and Clark have owned a 3-bedroom bungalow for 12 years. They make weekly mortgage payments of $214.88. They make quarterly payments for property taxes of $945. They have a separate bank account for home repairs and put $250 into this account each month. They receive bills for electricity, natural gas, water, home insurance, satellite television, telephone and internet access. The average monthly total for these expenses is $560. Calculate Lois & Clark’s total annual expenses associated with the house, to the nearest thousand dollars.
EXPENSEAMOUNTFREQUENCYTOTAL Mortgage$214.88Weekly214.88 x 52 = $11 173.76 Property Taxes$945Quarterly945 x 4 = $3780 Home Repairs$250Monthly250 x 12 = $3000 Utilities & Other Bills $560Monthly560 x 12 = $6720 TOTAL: $25 000 ! THINK ! So how much does your net income need to be in order to pay $25 000 a year for house expenses alone?