When you bought your home twenty years ago, all the added expenses you’re struggling with today might not have occurred to you. In fact, most first-time homeowners don’t budget for the additional out of pocket costs associated with owning their own homes. In large metropolitan areas across Texas, homeowners can expect to pay $10,000 plus in expenses each year – above and beyond their mortgage. In this post, we’ll go through some of those unexpected costs, and what you can do to keep the costs of homeownership under control.
Utilities & Maintenance
While a rental agreement may include utility responsibilities such as internet access, owning property entails another list of potential utility payments. You will need to account for perhaps larger electricity and gas bill payments, more than likely due to larger square footage. Also unexpected maintenance is definitely a challenge.
Homeowner’s Insurance
The national average cost of homeowner’s insurance is about $1,300 a year. The average in Texas is about $2,000. However, if you live on the Gulf Coast, you’re looking at annual rates upwards of $7,000.
Property Taxes
By far the largest percentage of hidden costs – property taxes for many Texas counties are sky rocketing. Planning ahead to budget for these costs is essential. If you’re not setting aside a portion of these tax costs each month, it can be difficult to write a check for thousands when your bill arrives in October. This causes many property owners to get behind on their taxes, but the late fees that accrue rapidly are crippling.
Hidden Costs for Texas Homeowners
According to a report from Zillow in August of 2018, Texas homeowners in many major cities are among those who will have the highest costs, including:
- Austin – $12,457/year or $1038/month
- Dallas – $10,712/year or $892/month
- Houston – $10,110/year or $843/month
- San Antonio – $9,171/year or $764/month
How Home Tax Solutions Helps
The average homeowner in Texas should budget for between $600 and $1000 a month in expenses in addition to their mortgage. Getting behind on even one payment can significantly impact your family’s finances. If you’re struggling to pay the property tax bill that was mailed out in October, let the Home Tax Solutions team help. We offer low interest property tax loans for residents in all 254 Texas counties, and we are dedicated to helping people stay in their homes. To get started, complete our simple, online form or call one of our five conveniently located Texas offices. One of our loan officers will be happy to help you.
