A lot of families in the U.S. own their homes. According to the U.S. Census Bureau, a whopping 65.8% of Americans own their primary residence. While owning a home can be a smart investment in your future, there are some hidden costs. Every year, U.S. homeowners spend upwards of $18,000 on maintenance, property taxes, insurance, and more. Let’s take a look at those costs so you can skip the surprises and focus on affordability.
Property Tax Increases. Sure, when you finance a home, the property taxes are simply part of the monthly payment. But, the longer you own a home in one area, the more likely you are to see increases in your property taxes due to special assessments, new schools, utility infrastructure updates and more. Even if you have a fixed-rate mortgage, your monthly payments could increase by hundreds of dollars every year.
Landscaping and Pest Control. Mowing and watering the lawn and keeping plants alive cost money. And so does pest control, including keeping ants, mice, rats, spiders, and other invaders out of your home. These hidden costs can add up to $2,500 a year.
Overall Maintenance. Homes need constant upkeep. To ensure you have the money for HVAC and other repairs, set aside 1% of your home’s value every year.
Insurance Deductibles. Today’s insurance policies often have separate, higher deductibles for specific events and covered damages. Pay close attention to your policy and set aside the money to pay those deductibles should you need to file a claim.
Utility Fees. When you get a water, natural gas, electric, or other utility bill, you’ll pay for the amount of the resources you used. But you’ll also pay delivery fees, infrastructure surcharges, and grid resilience fees. And those fees increase year after year.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.