Home Ownership Costs: Unknown Costs

It is an American dream to have your own home somewhere down the line, especially after you graduate. But sometimes, apart from ordinary mortgages that we always have to account for, there are many other hidden house ownership costs that go straight into our heads as soon as we sign official papers to own property. This is despite all the help we get from brokers, real estate agents and lawyers.

But hidden costs are something that new college graduates face, it can also be newlyweds, middle-aged couples thinking about downsizing or even seniors considering moving to a retirement community. If you take into account the size the average American mortgage, you will be very surprised.

And we think renting alone is eating away at all our hard-earned investments, huh? It turns out that just because we have a house doesn't mean it's suddenly "free" for us to live it.

If your tenant intends to own a house for yourself or your family, then we are free to register some hidden costs associated with ownership of the house that you will be responsible for if you decide to do so.

Home Ownership Costs: Less Expenditures

Easy to Forgotten Monthly Home Ownership Costs

1. Opportunity Costs

Opportunity cost by definition, means the next best benefit or opportunity that someone skips when they choose something over another. When it comes to home, the next best alternative to owning a home is to rent a house. But the money people use to buy houses can also be used to grow and earn income, or invest in stocks, bonds or even "high-interest" savings accounts.

So if you rent instead of buying a house with a £ 250,000 home ownership fee, you could save yourself £ 250,000 and possibly even depreciate the value of the house. Plus, you will only pay rent instead of a mortgage.

Therefore, the opportunity cost of buying a home will be rented rather than paying a mortgage. On the other hand, if house prices rise, you will lose capital appreciation. And if house prices go down, then you will be safe by not losing the value of capital.

The point is that if you own a house and don't get a refund for it, then there is no value in buying a home in the first place.

2. Property Tax

When calculating property taxes, you should enter property taxes and loan amounts, instead of just entering the principal and interest rate ratio.

These people usually get a mortgage on their home, and must pay their property taxes. In this way they will be able to pay their mortgage and set aside money for property taxes.

But if you don't pay taxes, you can calculate the annual property tax by dividing it by 12 and then adding it to your estimated monthly home ownership costs. You can see this information in the MLS list.

It should also be noted that taxes tend to increase every year. So, if something like that happens, make sure you have an allowance for your budget.

3. Water Filtration

Clean water is not an option, but a necessity. And even so American drinking water quality is one of the safest in the world, pollutants such as pesticides, heavy metals, drugs, and hormones are sometimes found in the country's water supply.

The average cost to install a water treatment and purification system for households is $ 1784 as of this writing. Although the range ranges between $ 862 and $ 2,771, which depends on a list of factors. This also depends on the type of water purification system that the homeowner wants to install, whether it is a distiller, all have a system or reverse osmosis.

4. Maintenance of Your Water Filtration System (Includes Softener)

If you think that a house only has hidden costs related to home ownership, you are mistaken. Hidden costs for water filtration systems usually include equipment rental costs, separate installation costs, and monthly maintenance costs. In addition, the disposal of waste materials, such as used filters, and cartridges spent on activated carbon units, increasingly accumulates water treatment costs and must be calculated at the purchase price. This is where you need to ask the dealer from whom you purchased the water filtration system about all the costs that accompany the system, especially those related to installation and maintenance.

The water filtration system is also equipped with a water softener component that handles hard water by removing minerals that have the potential to damage the overall health of the homeowner. The problem with salt-based water softeners is that you don't pay only for the unit. During average cycle of 15 to 20 years from softener, you will be charged three main costs, including routine maintenance, a bag of salt, and an additional fee to pay for your water twice.

If you consider water softener alternatives such as a reverse osmosis system, you can save up to $ 300 $ 11,950 per year, which is a substitute for salt, electricity and operating costs.

To learn more about how long water softeners last, visit this site: https://americanhomewater.com/how-long-does-a-water-softener-last/

If you are in the Phoenix, Arizona area, you can visit yourself at:

+1 602-993-0083

23439 North 35th Drive # 7

Glendale, Arizona 85310

5Property insurance

There are more monthly home ownership fees then there are only rent apartments with only one bedroom. Even with the tenant insurance you have, you still have to withdraw more when it comes to home insurance. Plus, there are several other factors to consider regarding home insurance.

And buying an older home at a lower price tag when several other new homes will only further hamper your finances in the long run. This is because plumbing, heating, and the electrical system of older homes are more vulnerable to damage or disaster. And don't even think that insurance companies won't go through your credit record or even raise their rates based on your credit score, because they can.

6. Transaction Fees

The costs of closing and selling a house are some of the scariest costs associated with home ownership. And if you think you won't count the costs after this, think again. Some additional costs included with transaction or closing fees include application fees, attorney fees, escrow fees, courier fees, credit reports, valuations, home inspections, homeowner insurance, and more.

Although closing costs vary greatly depending on where you live, the house you buy, and the type of loan you choose. But more or less, most homeowners take into account the types of costs we have mentioned.

Closing costs can even go up to 10% when the deal has been decided. This means that there may be between $ 400 – $ 1000 in hidden value, unexpected costs that you must complete.


Ultimately, our goal is to give you a realistic view of home ownership and the types of costs you will be liable if you decide to proceed. Our only suggestion is that you take into account your overall budget and also how much you can realistically afford before you decide to invest in a home mortgage for you and / or your family.