Hi! I was contemplating putting my money on a house so I pay mortgage instead of rent. While that's all good, how much does a home cost in maintenance/other categories etc over the down payment and mortgage? I've heard it costs up to 5% of the cost of the house every year, but that sounds like a lot. #sanfrancisco
Tax is 1.2%, insurance would be around 2000 a year, assuming on pmi, maintenance new appliances amortized is around 200 a month, gardener is 100 a month, hoa could vary, home warranty insurance is around 500 a year.
You will need 20% down payment. 3% closing cost. The maintenance varies but should not differ too much from your current residence
You don't need 20, there are plans for as low as 3 pct.
We are too cheap to pay for mortgage insurance
5% is at minimum 5x too high. Varies greatly depending on the house though
When budgeting for maintenance remember the cost rarely are spread out evenly. So you might not be paying out 5% a year. It’s more like nothing for a year or so and then bam!, need a new water heater, roof, or the basement floods etc. so you’ll want to make sure you are saving for when those costs show up.
Good point
Here's some expenses that were not covered previously.. 1) Termite/pest control 2) Roofing (depending on the age of the house) 3) Small appliances (they work, but small things like the panel/button might not work and you have to call a handyman) 4) Big appliances like AC/heater 5) Different insurance depending on the location of your house like fire, flood, etc 6) HOA, PMI, all other Honestly, I am lazy and looking back I miss living in an apartment where I can just call the landlord and tell them to fix and replace everything...
Yeah but you burn rent money for that. Can't have it both ways
Honestly, I spent more money buying a house. I am about to sell it and whatever appreciation and principle I paid will be zeroed out once I pay closing costs, realtor fees, and account for all the maintenance and repair costs..
Sometime the property tax is not accurate as listed in real estate app(eg Zillow).
Zillow is notoriously bad for this. Redfin is generally more accurate
In one year, I’ve had a leaking shower head, to buy a replacement fridge, an exploded faucet, and a replacement garbage disposal. Total cost was 0.3% of the selling price, out of which half was just the new fridge.
Learn to do the basic electrical and plumbing chores. California weather is good you don't have to spend a lot on maintenance. Prepare to pay a big chunk for major improvement when you buy a house though, it saves you a lot of headache in the future.
Maintenance is typically priced as 1% per year, but in the Bay Area it is going to be much less.