7 Sneaky Hidden Costs of Homeownership, According to George Kamel

GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.

These brands compensate us to advertise their products in ads across our site.

This compensation may impact how and where products appear on this site.

home tax deduction

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.

it’s possible for you to read more about oureditorial guidelinesand our products and servicesreview methodology.

You dont want expensive budgetary surprises after committing to a home loan.

But they also come with fees, which can increase over time.

These fees vary greatly, depending on where you live and the amenities and services the HOA provides.

However, the national monthly average for a single-family home is $244, according to a Rocket Mortgagesurvey.

Dont be surprised if your utility bills are higher when owning than when renting.

This figure includes natural gas, electricity, water, garbage collection, internet and cable.

The national average is $300.

Kamel recommended checking Facebook Marketplace and Craigslist for a used one.

When you rent, the landlord covers the maintenance and repair costs.

These expenses fall on you as a homeowner, though.

email sharing button

This can be one of the biggest adjustments when you go from renting to owning, according to Kamel.

Homeowners spent an average of $2,458 on maintenance and $1,667 on unexpected repairs in 2023, perSoFi.

To prepare for these expenses, Kamel recommended establishing a maintenance sinking fund.

Some financial experts suggest saving 1% to 4% of your homes value annually.

Others say you should save one dollar for every square foot of livable space you have.

Kamel considers property taxes sneaky for two reasons.

First, like most homeownership expenses, property taxes increase as your homes value rises.

Second, youll always be responsible for the property taxes, even after you pay off your mortgage.

Over the past two years, the average homeowner has seen a 20% increase in their premiums.