According to a 2023 poll of 1,000 first-time home buyers, the cost of owning a home (beyond the mortgage) averages a whopping extra $17,459 annually. How does that happen?
While many buyers purchase fixers that cost more to renovate than expected, according to 64% of those surveyed, the ordinary costs of maintaining a home are also much higher than anticipated.
Typical costs include roof fixes and furnace repairs, maintenance of the appearance (watering, planting, painting, patching, etc.), upgrading appliances, utilities, rising HOA fees, decor, furniture, play items, and more.
Advice to home buyers is to estimate 1% to 4% of your home’s value (based on condition) for annual expenses. If you buy a $500,000 home in decent shape and you’re frugal, plan on at least $5,000/year, or an extra $417/month in ordinary expenses beyond the mortgage.
Are you (or is anyone you know) interested in buying a first or second home this year? Contact me for an initial consultation. ~Valerie, (718) 399-3320