Do you understand the true cost of home ownership?
Here is my home ownership cost fact sheet to help answer this question. Many people do not look at the long term costs of home-ownership. Most people understand about the standard reoccurring cost of the mortgage, insurance and taxes, but do not take in to account for all of the maintenance cost, repair cost, and home item replacement cost. I have complied a list of the normal cost in 2011 dollars for these hidden home ownership cost.
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All of these costs will differ depending on size, age, and condition of your specific home. When you rent a home or apartment many or all of these costs are paid for by the owner of the property.
- General Maintenance: This including all of the monthly and seasonal items to keep your home in good condition. These cost will average about $80 to $120 per month.
- Utilities: In many rentals these expenses are included. In a normal home for heating/cooling, electrical, cable, internet, and phone the cost will run on average about $400 to $600 per month.
- Additional Furniture: If you are moving into a larger home then you may have be renting then you will need to put out some money to fill these extra rooms.
- Pest Control: Depending on your area, in the southwest in places like Arizona, you will have a reoccurring cost of termite control that can run around $100 per month. In other areas you may need ant or cockroach control. These also can run close to $100 per month.
- Yard Maintenance: Now you have a home with a yard to take care of. With just maintenance alone you will average about $50 per month.
- Appliances: Most rentals come with appliance that you do not have to replace or maintain outside of cleaning. In your new home you will probably have to purchase new appliances when you move in and save over time to eventually replace or repair these items as they age. Here is a list of general length of operation and average cost to replace.
- Dishwasher 10 years
- Clothes Dryer 14 years
- Garbage Disposal 10 years
- Freezers 16 years
- Microwave Ovens 11 years
- Electronic Ranges 17 years
- Gas Ranges 19 years
- Gas Ovens 14 years
- Refrigerators 17 years
- Trash Compactors 10 years
- Clothes Washers 13 years
- Exhaust Fans 20 years
Home Repairs: If you happen to move into a brand new home then you should not have any home repair cost for a while. For rest of the people who have older homes you better start saving up. Here is a list of common repairs, the time frame of expectancy and average cost. These time frames are based on average wear and tear with normal maintenance conducted.
- Kitchen Cabinets 17 years $225 ln. ft.
- Bathroom Cabinets 20 years $225 ln. ft.
- Carpet 11 years $9.25 sq. yd.
- Gas/Oil Furnaces 18 years $2500
- AC Unit 16 years $3200
- Electronic Heat 10 years $400 per unit
- Burglar Alarms 14 years $1200
- Smoke Detectors 12 years $75 each
- Interior Paint 7 years $3 sq.ft. based on floor space
- Exterior Paint 7 years $2 sq. ft.
- Exterior Sealer 2 years $4 sq. ft.
- Wallpaper 7 years $8 sq. ft.
- Swimming Pools 18 years Varies Widely
- Wood Decks 15 years $25 sq. ft.
- Fences 12 years $30 ln. ft.
- Asphalt Roofs 20 years $3 sq. ft.
These are only some cost. Home ownership cost for every home in every section of the United States will have different items to consider. This list is to give you a general idea of cost and life expectancy.
- Remodeling Cost: This is another expenditure that you need to plan for. Because it can very depending on personal taste, frequency, and other considerations it is to hard to give a cost. Just don’t forget to evaluate this for yourself and save on a regular basis to cover this cost.
By: Tom Corliss