Most Americans that own homes have more than likely considered themselves “house poor” at some point. In simple terms, “house poor” simply refers to a feeling that housing expenses are higher than owners can typically handle. According to a study by Consumer Affairs, a majority of home owners found the price of home ownership to be more than they expected. In fact, 7 out of 10 home owners considered themselves to be house poor.
A closer look at “house poor” home owners
- 73% say that meeting household expenses is increasingly difficult
- 78% of millennials felt somewhat house poor
- 54% say house-related expenses are their most considerable financial burden, despite their homes being their most significant asset
- 40% say housing expenses are more than they can afford
Underestimated expenses
Underestimated expenses are quite common during home ownership, particularly for first-time homeowners. Below are some of the most common underestimated expenses.
- 1/3 of homeowners report having trouble meeting all their financial obligations on a monthly basis
- 44% of homeowners are carrying credit card balances due to unforeseen expenses
- 40% of homeowners cited property taxes and associated fees as a major source of stress
- 49% of homeowners underestimated insurance premiums and homeowners association (HOA) fees
- 63% of homeowners underestimated regular repair costs
- 60% of homeowners underestimated regular maintenance costs
Summary
Buying a home is likely the biggest purchase a person will make in their lifetime. While this can be a financially stressful experience for some, it is important that you always budget accordingly for unforeseen expenses. When first purchasing a property, it is likely that there will be unforeseen expenses popping up such as the purchase of appliances, furniture, or simply minor repairs and renovations. It is important to note that these unforeseen expenses do not end once you move into the home. As always, it is a best practice to maintain a budget for unforeseen expenses that may arise in the future. For example, it is easy to incur a $5,000 or so expense for a new air conditioning unit. Needless to say, this is a mandatory item that you will not want to live without in South Florida!
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!
