Owning a home can be an empowering feeling and is certainly a major step towards financial independence and retirement. But it’s important to consider all the expenses of owning a home, not just the mortgage itself.
For example, your heating costs will increase, or maybe at some point you may need to renovate your house, you may even need to find a 24 hour plumber. Plus you’ll need home insurance and a security system to help protect your investment in your home.
For more ideas on some of the expenses you can expect and some ways to save money, have a look at this infographic created by GoBankingRates. (click image to enlarge)
Find the best bank rates at GoBankingRates.com.
Related Posts:
Tom Drake is the owner and head writer of Canadian Finance Blog.
While you’re here, consider signing up for the 
Hey Tom, thanks for publishing our infographic!
We found a lot of great statistical data that came from HUD’s 2009 American Housing Survey from this past July, and probably could have done a separate infographic with it! The actual dollar amounts are examples, but you’re right, homeowners have far more expenses than the average renter. Here’s the link for the HUD study: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-138 It’s pretty interesting stuff!
We have a saying fools makes a house and smart people stays in it. There are certainly a lot of expenses that you might incur is you own a house but staying in a rented accommodation is any day cheaper and affordable. The only difference is you get a sense of security if you own a property and nothing else.
@CC, I don’t know how smart it is in paying someone else’s mortgage…
A rented accommodation might be cheaper now, but i highly doubt it will be cheaper later once the mortgage is done….
Great Post!
Far too many homeowners (especially new ones) don’t have any perception of the costs involved in purchasing a home and the expenses that you almost immediately have to put forward.
Great chart. It is true so many of the expenses are not clear to the would be home owners.
For Canadian mortgage ideas you can visit blog.canadianmortgageadvisor.ca
Great graph. Maybe potential homeowners should all take a course to prepare them for the costs of owning a home.
It’s important for homeowners to know upfront all the potential costs of owning a home.
I can say that owning a home in California is nearly always a money maker as well ==== as long as you stay in it long enough. In 30 years my husband’s home went from $46,000 to $400,000 when we sold it. And that wasn’t in a great neighborhood where appreciation was even greater.
If you are looking to buy a home and you feel anxiety about unknown bill payments, upcoming renovations, and yard work… then you might want to consider a condo. Most condos have consistent monthly payments and fewer surprise expenses. Typically, you won’t have to repair a roof and you won’t have to hire someone to shovel your driveway. But make sure the condo has a good reserve fund and a history of being financially competent.
This is great advice for potential home buyers. As a Vancouver realtor I see people all the time who haven’t consider these added expenses.