There is more to buying a car than just the purchase price. After buying the car, the owner still faces insurance, annual taxes and licensing, fuel, tires, batteries, maintenance, and for some, tolls and parking.
The same is true for housing, but with a much larger array of expenses. To ascertain the real costs of homeownership beyond the monthly principle and interest payment, Realtor.com ranked the 100 largest metros by the following criteria:
- Property tax rates
- Home insurance premiums
- Remodeling costs
- Maintenance and repair costs
- Hourly rate of housekeepers, home cleaners, gardeners and landscapers
- Pest control services
- Electricity, heating oil and natural gas bills
- Household goods such as 40-inch flat screen TV, laundry detergent, toilet paper
What metros have the highest hidden costs according to Realtor.com? Under the insurance column, note the high expenses for those metros (except Honolulu) with higher hurricane potential: Cape Coral, Miami, New Orleans and Houston.
I live in Houston. In addition to the property tax rate listed, each community, hospital district, community college and school area have other property taxes resulting upwards to a 3 percent property tax rate for some. Texas does not have an income tax, however. Also, while the average homeowner’s monthly utility bill is listed as $189, there is more to the picture. Since purchasing our house eight years ago we have replaced and upgraded:
- Air conditioners with high SEER ratings
- All windows with a much greater energy efficiency
- Appliances to Energy Star Ratings
- When roofing, we had them remove the entire roof deck and replace with a decking having a built-in radiant barrier
As a result, our electricity bill in August (the most expensive month due to high-air conditioning costs) for an almost 3,000 square foot home typically is less than $130. But this can vary dramatically from property to property
There are other expenses for some not included in this list and that may not be included in the already-mentioned expense categories including:
- Water and sewer charges
- Telephone, internet, television
- Garbage pickup
- Homeowner or condo association fees
Should these costs scare away potential homebuyers? Not at all, as buying is still cheaper than renting in most markets across the country. But potential homebuyers should enter the process fully informed.
To read the entire Realtor.com article click http://www.realtor.com/news/trends/top-10-markets-with-the-highest-hidden-cost-of-homeownership/?identityID=577d5c8652b7729cf2011c9d&MID=2017_0609_WeeklyNL&RID=4056478642&cid=eml-2017-0609-WeeklyNL-blog_1_costofownership-blogs_trends
Happy INFORMED home shopping.
Ted