What is Not an Example of a Cost Related to Home Ownership? A Guide for Potential Buyers

Home ownership is a dream for many people, but it also comes with a lot of responsibilities and expenses. Before you decide to buy a house, you should be aware of all the costs involved in owning and maintaining a property. Some of these costs are obvious, such as the mortgage, property taxes, insurance, and utilities. But some of them are less obvious, and may surprise you if you are not prepared. In this article, we will discuss some of the costs that are not related to home ownership, and why you should not include them in your budget.

Home Improvement Costs

One of the benefits of owning a home is that you can customize it to your liking. You may want to paint the walls, replace the flooring, upgrade the kitchen, or add a deck. However, these are not costs that are related to home ownership, but rather to your personal preferences and lifestyle. Home improvement costs are optional and discretionary, and you should not expect to recoup them when you sell your house. According to HomeAdvisor, the average cost of home improvement projects in 2023 was $9,357, ranging from $2,500 to $25,000. Unless you are making essential repairs or improvements that increase the value of your home, you should not consider these costs as part of your home ownership expenses.

Furniture and Appliances Costs

Another cost that is not related to home ownership is the cost of furnishing and equipping your house. You may need to buy new furniture, appliances, curtains, rugs, lamps, and other items to make your house feel like a home. However, these are not costs that are inherent to owning a house, but rather to your personal taste and comfort. Furniture and appliances costs are variable and depend on the size, quality, and style of the items you choose. According to the American Home Furnishings Alliance, the average household spent $2,300 on furniture and bedding in 2023. Unless you are buying items that are essential for your health and safety, you should not consider these costs as part of your home ownership expenses.

Travel and Entertainment Costs

A third cost that is not related to home ownership is the cost of travel and entertainment. You may think that owning a house will save you money on travel and entertainment, since you will have more space and amenities to enjoy at home. However, this is not necessarily true, as you may still want to go out and have fun, or visit your family and friends in other places. Travel and entertainment costs are not affected by whether you own or rent a house, but rather by your personal preferences and habits. Travel and entertainment costs are also variable and depend on the frequency, duration, and destination of your trips and activities. According to the Bureau of Labor Statistics, the average household spent $3,526 on entertainment and $2,988 on travel in 2023. Unless you are traveling or entertaining for work or education purposes, you should not consider these costs as part of your home ownership expenses.

Conclusion

Home ownership is a rewarding and fulfilling experience, but it also comes with a lot of costs that you should be aware of and plan for. However, not all costs are related to home ownership, and some of them are optional and discretionary. In this article, we discussed some of the costs that are not related to home ownership, such as home improvement, furniture and appliances, and travel and entertainment. These costs are influenced by your personal preferences and lifestyle, and you should not include them in your home ownership budget. By being realistic and prudent about your home ownership expenses, you can avoid financial stress and enjoy your house to the fullest.