Budgeting

A lot of people buy Newport Beach homes, or decide to move to Newport Beach, with all the wrong ideas about its costs. There’s more to Newport Beach homes for sale than just the sale price—you also have to consider the moving costs, the mortgage interest, closing fees, taxes, and little expenses that add up to a good chunk of money. Before you make your decision, take a few hours to map out your budget and see whether Newport Beach real estate is a good investment.

Defining Your Budget

The first step is to know how much you have—and how much of it you can afford to put in a home. Most Newport Beach CA residents consider their homes their biggest investment, so think of it in terms of your other expenses. Before checking out prices for Newport Beach homes, consider your total monthly expenditure, including:

• Mortgage payments
• Variable expenses (food, utilities, car maintenance)
• Fixed expenses (tax, insurance, subscriptions)
• Child care and school fees
• Personal expenses (travel, movies, books)

Understanding Base Prices

Once you know how much home you can afford, you can start house-hunting. Most Newport Beach homes for sale are shown with base prices—the price excluding any upgrades and add-ons. Watch out for homes come with hidden costs, or payments for features that should be standard in Newport Beach real estate. Besides looking at homes, look up the building companies and see what each one offers as standard features. Some of the things you should look for are:

• Construction insurance
• Utility services (electricity, water, phone)
• Landscaping
• Driveways
• Lighting
• Flooring and flooring treatments
• Window treatments
• Storage (cabinets, closets, kitchen cupboards)
• Soil tests, excavation and drainage

Setting Your Priorities

Besides those legally required in Newport Beach CA, most extra features are optional and come at an extra expense. Early on, decide which features you can and cannot live without, and those that can wait until after you’ve moved. That way, you’ll know what to look for and find Newport Beach homes that realistically suit your budget.