herald

Friday 21 September 2018

Family home now costs €16k a year to own and maintain

Mr Faughnan offered advice
Mr Faughnan offered advice

The cost of owning and maintaining a family home has increased by more than 3pc in the past year.

Keeping a home now costs €16,169.15 a year or 43pc of the average national wage, according to the latest figures.

The increase in the cost of running a home follows a rise in the national average price of a second-hand home in Ireland. Home values increased from €215,000 during the third quarter of last year to €228,000 in the third quarter of this year.

Those who took out a 90pc mortgage this year are likely to pay €9,866.02 per annum - an increase of 4.48pc on last year.

AA Home Insurance issued the figures yesterday after making detailed calculations in relation to the total cost of owning a house, and subsequently running one, in Ireland.

Mortgage and property tax are calculated based on the current average property price.

"The big story for 2017 has been rising house prices and increased difficulty for those trying to get on the property ladder this year," said Conor Faughnan, the company's director of consumer affairs.

Ladder

"For new buyers the concern is that house prices are going up, especially in Dublin. However, one thing this piece of research does demonstrate is the effectiveness of shopping around.

"Across all the bills, you'll see considerable variations between competitors. Spend a little time on the research and it can certainly save you money," he said.

Maintenance, repair and contingency funds are the second single most expensive bill for Irish householders and have increased marginally by 0.5pc, the research found.

The average homeowner is likely to spend or set aside €1,246.83 each year to keep up with wear and tear.

The average homeowner will spend €707.75 (up 2.3pc) on heating their home this year and a further €857.81 (up 9.8pc) on electricity.

Other costs included in the study were: home insurance (building and contents combined) at about €547.81; telephone and broadband bills at €468.66; and household appliances at €573.82.

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