First Time Home Buyer - Homeowner Expenses List - how much does it cost to own a home?
Buying a house is a massive milestone, but it's also a huge financial commitment. It's not just the initial purchase price that you need to worry about - there are a ton of ongoing costs that come with being a homeowner. And trust me, some of these expenses can really catch you off guard.
I recently came across a survey that showed that the number one reason why some homeowners regret buying their house is because they underestimated how much they'd have to spend on maintenance and unexpected expenses. It's crazy how quickly those costs can add up!
What are the hidden costs of buying a house?
So, what kind of expenses are we talking about here? Obviously, there are the regular things like mowing the lawn, repainting the exterior, and keeping everything clean. But there are also a bunch of less obvious costs, like pest control, gutter cleaning, replacing smoke alarm batteries, and fixing the roof.
And let me tell you, replacing a roof is no joke. According to HomeAdvisor, it can cost anywhere from around $5,600 to almost $12,000 on average. That's a serious chunk of change! But hey, if you take good care of your roof, it can last you 20-50 years, so it's definitely worth investing in.
You've also got to think about the cost of maintaining your HVAC systems, electrical wiring, and plumbing. If something goes wrong, you might have to call in a pro, which can run you $50 to $150 per hour or more.
But wait, there's more! If you live in an area with a Homeowners Association (HOA), you'll probably have to pay HOA fees, which can add up to thousands of dollars a year. And of course, you'll need homeowners insurance to protect your house (and yourself) in case something goes wrong. Oh, and don't even get me started on property taxes, which are based on the value of your home.
How to budget for unexpected home expenses
On average, all these extra expenses can add up to around $15,000 a year. But it really depends on where you live. If you're in a big city on the East or West Coast, you could be looking at over $20,000 a year! But if you're in the Midwest or a smaller town, it might be closer to $10,000.
First time home buyer - How to buy a home
So, how do you make sure you're prepared for all these costs? The key is to budget! Make sure you include regular expenses like HOA fees, insurance, and taxes in your monthly budget. And for maintenance and repairs, experts recommend setting aside 1-4% of your home's value each year in a savings account. So, for the average U.S. home worth $375,000, that would be $3,750 to $15,000 a year, or about $312 to $1,250 a month.
Make a house buying checklist.
Buying a home is super exciting, but it's crucial to understand all the financial responsibilities that come with it. By being smart about budgeting, staying on top of maintenance, and having some money saved up for emergencies, you can enjoy your home without stressing about money all the time.
