Homeowners are surprised by the cost of taxes, utilities, maintenance

Personal Finance


Homeownership might be more expensive than you expect.

Often-forgotten and underestimated costs of owning a home — from utility bills to yard care — add an average $9,080 per year to homeowners’ tabs, according to a new analysis from real estate site Zillow and service site Thumbtack. (See a breakdown by major markets, below.)

Hidden costs can be especially dangerous given buyers’ tendency to overspend. Nearly 4 in 10 first-time buyers exceed their budget, per Zillow.

“Determining how much a home will ultimately cost you each year and what you can afford is one of the most challenging aspects of home buying, especially for first-time buyers,” Zillow’s chief economist, Svenja Gudell, said in the announcement. “Before starting a home search, take a good look at your finances to determine a monthly payment range you can comfortably afford.”

To avoid making a purchase you’ll regret, make sure to include property taxes, insurance and utilities in your budget, said Kevin Meehan, a certified financial planner and regional president of Wealth Enhancement Group in Itasca, Illinois. (By Zillow’s estimate, those three line items alone add more than $500 to the typical homeowner’s monthly costs.)



Source link

Products You May Like

Articles You May Like

Employers should use corporate tax cut for larger 401(k) match
China lifts yuan midpoint to highest in over two years
Goldman Sachs posts EPS of $5.68 vs. est. of $4.91
Trump considers big ‘fine’ over China intellectual property theft
GM sees flat 2018 earnings, with sales of pickups picking up in 2019

Leave a Reply

Your email address will not be published. Required fields are marked *