What are the Ongoing Costs of Owning a Home?
Buying a home is one of life’s most exciting milestones. From choosing new furniture to adding your personal touch to every corner, it’s easy to get swept up in the joy of homeownership. But once the boxes are unpacked, the reality of upkeep sets in—owning a home means maintaining it, too. So what expenses should new homeowners expect beyond the initial purchase?
The True Cost of Operating a Home:
According to the American Housing Survey, homeowners spend an average of $9,240 per year on general operating costs. These essential expenses include:
- Property Taxes— Roughly $3,700 annually
- Utilities (Gas, Electric)— Around $2,500
- Homeowner’s Insurance— About $1,250
- Water, Sewer, Trash— Approximately $850
These are recurring expenses most lenders consider when evaluating your mortgage approval, and they’re key to budgeting responsibly as a homeowner.
Budgeting for Maintenance and Repairs:
Today’s homes are built to higher efficiency and durability standards than ever before, but maintenance is still necessary. A good rule of thumb: set aside 1% of your home’s value annually for maintenance. For a $300,000 home, that’s about $3,000—or $250 per month.
Here are common areas that may need upkeep within the first five years:
- HVAC Systems: Replace filters monthly; professional inspection every few years.
- Plumbing: Drain your water heater annually and prepare for small fixes like valve or washer replacements.
- Electrical: Test smoke and carbon monoxide detectors regularly.
- Exterior Care: Clean gutters annually and inspect your roof for wear.
- Flooring: Clean and seal tile grout; high-traffic carpet areas may need replacing after 5–7 years.
Final Thoughts:
Homeownership isn’t just an investment—it’s a commitment to caring for something that grows in value and meaning over time. While maintenance can be a significant part of your budget, it also preserves your home’s condition and resale value.
At Usaj Realty, we’re here to help you understand every facet of homeownership—from financial planning to home maintenance tips. If you’re considering buying a home, our expert team is ready to guide you through the journey with insight, care, and confidence.
Ready to make your move? Contact Usaj Realty today to connect with a trusted local real estate expert.
