When deciding whether to purchase a house, condo, townhouse or co-op most people tend to forget the ancillary costs associated with owning that home. This topic came up the other week when I asked a buddy how living with in-laws went when he was in house purgatory (sold his house but didn’t close on his new one). He was ecstatic with how much money he saved month, and it got me to thinking how much money moving in with The Parents would save The Wife and I.
Ancillary Costs of Owning a Home
I am well aware that unless something dramatically changes in my life I will never have a roommate, and it is very unlikely that I’ll ever move in with my parents or the in laws but a guy can dream, right? Vertex has a fantastic spreadsheet to try and help new home buyers, but it only has the purchase price and home improvements, but what else would I save on besides the standard purchase discussion?
- Cable/Internet ($130/month)
- Homeowner’s Insurance
- Maintenance (UGH, $300/month for my Townhouse)
- Taxes ($4,500/yr)
- Food (would be lower)
I live in new constructions so I haven’t had to fix many things, but I have still got hit with expenses for:
- My upstairs toilet leaked causing the infamous bubble in sheet rock on my downstairs ceiling
Since getting anyone to come to your house costs, at a minimum a couple hundred bucks, I could imagine this category could get pricey. If I ever convince The Wife to move in with The Mom and The Pops the additional savings would probably be over $3,000 a month! Ah living the dream lol.
Enough about me and saving crazy cash, What else should New Homeowners think of?