Typical Costs During The First Year of Homeownership
Congratulations! You are a new homeowner! While everything feels really exciting, it probably also feels quite overwhelming. I can vividly remember walking into Lowes for the first time after moving into my first house and panicking when I realized I needed “one of everything!”
But being a new homeowner doesn’t have to be so scary if you’re prepared. There are a few expected costs that every new homeowner can prepare for before moving in.
How much should I expect to spend on repairs in the first year?
A good rule of thumb is to expect to spend anywhere from 1-3% of your home’s purchase price in repair costs the first year. Depending on if you got a home inspection or not (many didn’t in 2021/2022) you’re likely going to have some unexpected repair costs. Repair costs can range from something as pricey as new windows to an inexpensive repair such as new door knobs.
How much are property taxes each year?
Just like everything in real estate, it depends! In Massachusetts your property tax rate will depend on the city/town you live in, how much your house is assessed at, and can vary from year to year. In Massachusetts, the average single-family property tax bill is $6,719 per year. When researching tax rates on future towns/cities remember that tax rates are a value that is based on every $1,000 in assessed property value. For example, where I live in West Boylston the average tax rate is $17.68 per $1,000 of assessed property value for 2022 (down from $18.46 in 2021). This means that the yearly bill for a home in West Boylston valued at $400,000 would be $7,072 in 2022. Remember: this bill is split into 4 separate payments throughout the year. Be prepared for your property tax bill to be due quarterly on February 1st, May 1st, August 1st, and November 1st!
Keep in mind, your property taxes might be included in your mortgage payment each month!