I am often asked about the TRUE cost of home ownership. So many times, people are focused on their Mortgage principal and interest payment. But there is more to owning a home than simply your Mortgage payment.
Let’s Explore Three Hidden Costs Of Home Ownership
1. Filling your space. I find the larger the space I have the more tempted I am to “fill” this space with furniture, decorations and or artwork. Of course, I want nice things in my home and that typically means I am paying more for new items. I also am busy with work, social life, healthy living – and more – so I am not making the time to shop for quality second hand items, which are typically less expensive, to fill my empty spaces.
2. Major cleaning events. Carpet cleaning, furnace duct cleaning and landscape maintenance are unexpected expensese that renters are not incurring. If I have pets, children or allergies, I am having my carpets and furnace ducts cleaned annually to help alleviate my symptoms. I also think this is a wise, long term investment of dollars towards the future re-sale price of my home.
3. Opportunity cost of my time. I think regular maintenance of my home is time consuming (cleaning, small home repairs, shopping for tools/material, and planning projects). I also decide my level of involvement in home repairs. I may choose to invest my time learning “how to” OR I may spend less time, but more money, hiring a professional to complete work. I also think there is an opportunity cost to my time, in terms of dollars I could earn AND enjoyment I could be having.
In conclusion …
I think at some point I decide if the benefit of home ownership (pride, personal space, investment etc) is worth the investment of my dollars (down payment, interest cost) and time to maintain my property. I have been told MULTIPLE times that homes, with loving owners, are more likely to sell their home quickly and for top dollar, relative to a similar home without much upkeep.
I think THE FIRST step to potential home ownership is understanding “How Much Can You Afford” THEN exploring the hidden costs of home ownership.
Contact me via email or telephone to discuss your home ownership option.
Talk soon,
Chad Moore
403-809-5447
