The Costs Beyond the Mortgage That Homebuyers Often Miss
Utilities, upkeep, taxes and insurance add an average $23,686 each year, according to a Clever Real Estate study.
A mortgage is only one part of owning a home. The Clever Real Estate study found that typical annual spending on utilities, maintenance, renovations, property taxes and homeowners insurance totals $23,686. Those expenses can shape whether a home fits a buyer’s budget after the purchase is complete.
Utilities average $7,679 per year, while home maintenance runs about $5,162. Renovation projects add another $3,929 annually. Property taxes average $3,580, and 41% of homeowners say their bills exceeded their original expectations. Insurance costs average $3,336 a year; 62% report stress over rising premiums, and 22% fear losing coverage. The study points to severe weather, wildfire and hurricane exposure as factors behind higher insurance costs.
Homeowners in planned communities may also pay association fees averaging $4,196 per year. Large repairs can be especially costly: a replacement heating and cooling system starts at $5,000, while a new roof may cost $10,000 or more. Together, these recurring bills and occasional projects show why the long-term price of a home extends well beyond the monthly loan payment.
- aol.com