A Reality Check on Homeownership: The Hidden Costs that Can Throw you One Curve Ball After Another
Ann Garcia, CFP®
Head of Content & Author
Ann Garcia, CFP®
Head of Content & Author
Ann is a nationally recognized financial advisor and author who provides comprehensive financial planning and investment management advice to families, businesses, and individuals. She obtained her BA from the University of California, Berkeley, is a member of Phi Beta Kappa, and holds the Certified Financial Planner certification. Ann lives in Oregon with her husband and is the proud parent of two recent debt-free college graduates. In her free time, she enjoys running the Wildwood Trail and exploring Portland's vibrant food scene.
Tihomir Yankov, JD
Financial Advisor, Founder & CEO
Tihomir Yankov, JD
Financial Advisor, Founder & CEO
Tihomir is the Founder, CEO, and Registered Investment Advisor Representative of Tobi. Prior to founding Tobi in 2023, he was a consumer financial services attorney in private practice for twelve years. He earned his BA in Economics from the University of Virginia and his JD (cum laude) from American University. He lives on a small farm outside Washington, D.C. with his wife and middle-school son, perfecting the art of keeping their alpaca, llama, horses, and sheep in a semi-perfect state of harmony. Their rescued alpaca became the inspiration for the company's mascot.
You thought car ownership and repairs were expensive? Just wait.
According to the Intercontinental Exchange, in 2024 insurance and property taxes accounted for a staggering third of the mortgage payment for the average single-family home—the highest rate recorded in the last decade.
When you add HOA dues and maintenance cost, the hidden cost of ownership can catch pretty much everyone by surprise.
- ✔️ Roof
- ✔️ Gutters
- ✔️ Siding
- ✔️ Cracked windows
- ✔️ Jammed garbage disposal
- ✔️ Hidden water leaks sinking your floors
And that’s before you get to the things you want to do, like remodeling your kitchen. The list has no beginning and no end—and never follows your schedule.
Rule of thumb: Set aside and add 1% of your home’s value as extra cash reserves every year for future repairs–whether or not you have to use the money.
Example: If your current home value is $500,000, that means setting aside an extra $5,000 in cash reserves every year.
If you don’t spend it this year? Keep adding to the fund—big-ticket repairs often come unexpectedly.
What This Smart Card™ Does for You
- 🏡 Tracks your mortgage balance & payoff schedule
- 🏡 Tracks home value
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