As a homeowner for just over a year, I’ve already seen firsthand how expensive a house can be. While I was lucky enough to have some of the bigger expenses taken care of before I bought my house there are always unexpected – and expected – big home projects and repairs.
I don’t want this post to scare people from buying a home. I simply want to point out some of the bigger expenses that come with owning a home that may take a sizable bite out of your bank account.
- Roof – While you may get lucky and have your roof damaged by a storm right when it needs to be replaced, don’t bank on it. Having a roofing crew come out and install a new roof is going to run you at least a few thousand dollars, if not more, and is something to start saving for if the roof on your home is starting to look worn out.
- Siding – Siding is another home upgrade that will run you at least a few thousand dollars or more (depending on the size of your home). The nice thing about siding is that if you are replacing old siding that required maintenance work you can get now get newer maintenance-free siding that requires no effort on your part.
- HVAC – Heating, Ventilation, and Air Conditioning – I can’t be the only one who has heard horror stories of furnaces going out in the middle of Winter. When I was shopping for a home I always took a look at what condition the furnace, water heater, and air conditioning unit were in. It’s important to remember that it’s a matter of when they need replacing, not if.
- Concrete Driveway – Getting your driveway finished might not be that expensive, but watch out if you are looking to have a concrete driveway put in or redone because it’s not cheap. This can become expensive quick if you have a concrete path/stairs that go around your house.
- Water in Basement – Finding water in your basement is something that you never want to experience. Unfortunately wet/damp basements seem to happen in far too many homes. If you have a persistent water problem you may need to put in a sump pump system to keep your basement nice and dry. While it’s certainly worth the money, this also isn’t cheap.
- Plumbing Repairs and Upgrades – Similar to having a wet basement, water can quickly become your enemy if you have plumbing issues. While you can get away with Do-It-Yourself (DIY) in some cases, in others you will need a trained professional to tackle the job.
- Windows – Older homes will eventually need all the windows replaced. The nice thing about this expense is that there usually are tax credits available to ease the pain, your energy bill will decrease, and finally the new windows should last for a long time. Nevertheless, it’s important to keep this expense in mind if you have an older home or are looking into purchasing an older home.
This is not a comprehensive list. The main point is this: owning a home is expensive. Purchasing a home – and the subsequent mortgage payments – are just one expense to consider when buying a home. Be conscious of the fact that you will possibly (if not likely) have to spend additional funds on
Once you do own a home, plan on setting aside money each month in an emergency fund designated for home repairs, projects, and upgrades. It will make issues less stressful and make the funner projects, like a new kitchen or bathroom, more enjoyable.
What would you add to the list?
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We had to get a new roof on our house when it started leaking a couple years ago- luckily, it did happen right around the time of a major storm- so insurance covered it. But if that hadn’t been the case it would have run in the neighborhood of $10,000. Home ownership can definitely be expensive!
colormefrugal Wow that’s some great timing for you! We had a new roof put on before we moved in so we should be good for 10-20 years. I do need to check the ventilation up there, though…but yes it definitely isn’t cheap to own a home.
Owning a home is very expensive. Our ac is very old but luckily we won’t be needing it for several months! We also have an old dishwasher. Not sure how long that will last. We keep cash savings for these things so that we are ready to replace when the time comes.
BudgetforMore Our AC is thankfully newer, but you’re right no need for an AC today! We have an older dishwasher as well that will need to be replaced someday. Currently we are trying to build our cash savings so that we have the funds when the time comes.
I have been learning about this in my first year as a homeowner. We did quite a few home renovations before we moved in as well but still have to replace the front door. We also want a new privacy fence around the property and need to replace a retaining wall in the backyard. There is always something on the list.
Practical Cents I also will be replacing a retaining wall in my backyard. I’m going the DIY route with the help of a friend. Hopefully it works out!
At the moment I have had to fix the heater and some minor updates in the bathroom for my rental. I read you should budget about 1% of the cost of your home, thankfully I am still under that figure so far.
RFIndependence I think it partially depends on the condition of your home when you buy it. If the heater, air conditioning unit, roof, and siding are all in dismal shape I think you’d want to start budgeting a lot more than 1%. Then again, it could be a good benchmark.
Repairs have been one of the major reasons that I don’t want to own a home at this point in my life. It’s a lot easier to just live in an apartment and have the landlord come take care of things when they go awry. I might have to pay a little extra in rent, but it also comes with the freedom of being able to move for work if necessary.
MicrosMissions I hear you on this one, it’s definitely a lot easier to move if you don’t own a home, though renting your home is always an option (yes, it comes with quite a bit of work I’ll admit). I have to agree that it’s much easier to live in an apartment and not have to worry about home maintenance.
A few months after we bought our house our septic pump broke. $1,600 later we were $1,600 MORE in debt. Once our debt is paid off I’m opening separate savings accounts for house maintenance and car maintenance/registration and putting 5% of my husbands income in each one, each month. It might not cover it all if something happens soon, but it’ll be something to fall back on!
Miss Tightwad That’s an excellent idea! I definitely want to have separate car/house savings accounts in the future. It would make me sleep better at night, that’s for sure.