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REAL ESTATE
Homeownership Can Help You Build Wealth
But beware the ongoing costs
As a longtime homeowner, I find I’m still shocked by how much money I spend to keep my house in good repair. Dishwasher stopped working? A replacement is $900. AC is worn out? Goodbye, $10,000. Need a new roof? That’ll be $20,000 or more.
While I’m a proponent of homeownership, I think it’s also useful for homeowners — and especially first-time buyers — to be aware that homeownership brings a host of financial responsibilities.
To help consumers go into homeownership with clear expectations, Bankrate publishes a study. We found the average annual cost of owning and maintaining a single-family home in the U.S. is up 26 percent now compared to four years ago.
To determine average hidden homeownership costs nationally and in every U.S. state, Bankrate factored in the average cost of property taxes, homeowners insurance and 2 percent of the median sales price of single-family homes to account for maintenance and repair costs. We also included energy, internet and cable bills and adjusted figures for property taxes, energy, internet and cable bills and homeowners insurance premiums for inflation.
