When you tell someone you’re saving for a house, chances are you mean that you are putting away your hard earned money to be able to make a down payment on the home of your dreams. You’ve probably even set up a special house savings account. But once you’ve made the down payment and have the house, you’re done saving for your home, right?
Not quite!
Owning a Home is Expensive!
According to a study conducted by Zillow and Thumbtack homeowners can expect to spend around $9,390 each year in costs related to owning and maintaining a home (this figure includes property tax, utilities, and homeowners insurance in addition to ongoing maintenance).
The rule of thumb in the industry is that a homeowner can expect to spend 1% to 4% of the value of the home each year in maintenance costs. This means that on a home with a value of $217,600 (the average home value in the US), you could expect between $2,176 and $8,704 per year of maintenance costs! Trying to come up with this money when the need arises can be difficult and can force homeowners to use credit or their emergency fund for expenses that, while pressing, are not true emergencies.