Owning a house in 2012 & beyond. What are the costs?

Spiritofthekop

Just wanted to put a list together to get an idea of what costs there are to owning a house in Ireland in 2012 & beyond. Please add to if I've left anything out as I'm not sure on costs on everything)

1. Mortgage monthly repayments (with possible increase/decrease in interest rates)

2. Mortgage Protection (how much?)

3. Home Insurance (how much?)

4. Property Tax (currently €100 per year)

5. Bin Charges (anyone have a rough extimate?)

6. Water Charges (again no idea how much yet?)

7. TV Licence (€180??..how much is it?)

8. Home maintenance (impossible to know how much annually?)

9. Electricity Bills

10. Gas Bills

11. Property Management Fee's (affects plenty of people, hard to know average cost but could be in €1,000's annually)


If I've left anything out or if anyone knows roughly the average costs for some of the repayments please add to list as I just want to get an idea of what it costs these days.

Cheers.

The_Conductor

Spiritofthekop wrote: »

Just wanted to put a list together to get an idea of what costs there are to owning a house in Ireland in 2012 & beyond. Please add to if I've left anything out as I'm not sure on costs on everything)

Very good idea. If there is enough useful info on this thread I'll sticky it.

Spiritofthekop wrote: »

1. Mortgage monthly repayments (with possible increase/decrease in interest rates)

According to the Economist- we have the lowest mortgage rates in Europe (predominantly due to the number of tracker mortgages and variable rate mortages here). The ECB overnight rate is back down at 1%- which when you factor in an EU inflation adjusted inflation rate of just under 2%, is effectively a negative interest rate already- there isn't really much that can happen with interest rates. The current idea is to promote some sort of a QE (aka printing of money) scheme- however the Germans would have to be convinced that a slightly higher inflation rate is actually in their long term interest- given the past policies of the Bundesbank, this could be a major problem for them. We have gained a breathing space with the ECB's 3 year unlimited loans to EU commercial banks (aka- about 1.2 trillion being injected into the EU banking system)- so don't expect any interest rate cuts on the immediate horizon.

Spiritofthekop wrote: »

2. Mortgage Protection (how much?)

Mortgage protection (aka life assurance) is a composite several factors- but doesn't tend to be that expensive. I've a weighting on mine because of my poor health- and it works out at around Euro 30 a month for me per 100k, most people I imagine would be Euro 16-20 per 100k for mortgage protection per month.

Spiritofthekop wrote: »

3. Home Insurance (how much?)

Not that bad- depends on your claims history and whether you have other policies with the insurer. My annual policy is Euro 350- but I also have car insurance with the company in question (I'm not naming them as I have no reason whatsoever to endorse them for better or for worse).

Spiritofthekop wrote: »

4. Property Tax (currently €100 per year)

I think we know this is only going to go one way- up........ Speculation is that when a satisfactory general register is in place (with the assistance of utility companies etc) that the householdcharge will be converted into an official property tax and levied according to a formula partly derived from the size of the property, partly derived from its market value (good luck to them determining this aspect). All sorts of figures have been quoted- however lets see what is the intend of this- its to remove the need for central government to fund local authorities and their activities. A similar aim in the UK results in an average council tax of just under £2k per annum, payable by the resident of a property (no idea if the Irish system will be framed similarly- tenants are up in arms at the thoughts of they being liable for the tax). An Irish equivalent charge would be at least twice this to reflect our lower population density. I don't think 4k per annum is is possible though?

Spiritofthekop wrote: »

5. Bin Charges (anyone have a rough extimate?)

Irish mean is Euro 12.50 per week- taking into account bins may not be collected every week. This is EUR650 per annum.

Spiritofthekop wrote: »

6. Water Charges (again no idea how much yet?)

Not announced- but expected to be along the lines of 1,200 litres free per resident, per month- with anything in excess of this charged at 14c/15c per litre, alongside a 4 Euro monthly standing charge (connection fee). Again this is speculation- seems to be in the general ballpark though. At present we use about 400 litres per person, per day (incl. commercial water and all leaks)- so I don't think the seemingly generous 1200 litres per person will go very far................

Spiritofthekop wrote: »

7. TV Licence (€180??..how much is it?)

Its actually 160 per annum at the moment- and currently under review.

Spiritofthekop wrote: »

8. Home maintenance (impossible to know how much annually?)

God only knows. Definitely a couple of grand. If you're living in it yourself rather than renting it out- the ongoing maintenance tends to be a lot lower.

Spiritofthekop wrote: »

9. Electricity Bills

Depends on the property and how its kitted out. If you've storage heaters- your electricity bill will be something of fantasy statement- if not- well, it might be surprisingly manageable. Min 100 a month I guess- possibly a whole lot more depending on the particular property- and your energy usage habits.

Spiritofthekop wrote: »

10. Gas Bills

If you've gas heating- your gas bills are directly proportional to the energy rating of the building- a good energy rating equals lower heating bills. Its not worth while speculating on a specific amount- because it will vary by property.

Spiritofthekop wrote: »

If I've left anything out or if anyone knows roughly the average costs for some of the repayments please add to list as I just want to get an idea of what it costs these days.

Cheers.

Depending on whether this is a freehold or a leasehold property- you may very well have to factor annual management charges into the equation as well......... :mad:

engineermike

1. Mortgage monthly repayments (with possible increase/decrease in interest rates)

2. Mortgage Protection (how much?) not too sure on this one OP - I'm lucky enough not to have mortgage, there are some sites on line for quotation, dependent on criteria

3. Home Insurance (how much?)
Depends on where the home is for contents, bricks and mortar insurance - approx. 250 e - 300 euro per year with some basic contents cover in package, working off a secured home. Dublin area will have increase in premium

4. Property Tax (currently €100 per year)

5. Bin Charges (anyone have a rough extimate?)
Approx. 500e - 600e in the country, more again in the Dublin area
6. Water Charges (again no idea how much yet?)
I'd assume it is going to be 200 euro plus, again dependent on your property's water use age - cost can be negated by installing a rainwater recovery system, small cost to lower your water charges.
7. TV Licence (€180??..how much is it?)
160 euro (colour tv ! )
8. Home maintenance (impossible to know how much annually?)
These costs can be kept down early in the lifetime of the house if you spend a few hundred and have home properly surveyed - making you aware of costly issues or repairs and allowing you to negotiate with the vendor. A figure for general maintenance somewhere in the region of 400 - 500 euro for roofing, heating and other plumbing, drains etc. would be an assumed figure. Some items will only need maintenance every 2 years, keep your receipts and a copy of your survey which will help make any claim you have to make successful (if it meets the terms & conditions) of your insurance company
9. Electricity Bills

10. Gas Bills
ESB and GAS - i.e. energy costs. This is the most variable factor. Look for a good BER rating for the property - 'B2' or above.
ESB figure - approx 1300 euro per year, size of home and types - age and efficiency of appliances can vary that figure.

GAS - I don't have a figure for Gas or Oil - although i know 1000 litres of oil - probably not enough to get a house over an entire year is currently at €890 for 1000 L, with €18 euro increase this month for carbon tax and increases by at least 80 - 100 every year as shown by cheapestoil.ie

Personally I don't think its feasible to sustain those costs for traditional fuels, so I opted to highly insulate my house - increase natural light to the south face during improvements, I heat with a high efficiency stove with back boiler, insulated hot water storage tank and a solar panel.
Our running cost is approx. - €500 - 600 per year for solid fuel and that is all our heating and hotwater needs taken care of.
The down side is the initial investment in the home improvements listed, however they are improvements that pay me back down the line

mike f

Spiritofthekop

Thanks for the replies guys!...scary reading if im being honest!

@smccarrick...Im actually too scared to get out a calculator to add all that up!! :eek:

I'll add the Property managments fee's to the list as well as it affects plenty of people.

Also talk of a Media Licence fee coming out for having internet in your home but I'll leave that out for now as its just talk at present.

Ben D Bus

Spiritofthekop wrote: »

I'll add the Property managments fee's to the list as well as it affects plenty of people.

True, but be careful to reduce the home insurance figures (to contents only) as well as bin charges & home maintenance as these are included in the annual maintenance charge. Strictly speaking the bin charge is itemised separate from other charges but in my place it's all paid in one check.

Basically don't double count anything.

I may be being pedandic but I'd also argue that items 5 - 10 on your list are costs of living indoors rather than costs of ownership! You pay them whether or not you own.

StillWaters

engineermike wrote: »

5. Bin Charges (anyone have a rough extimate?)
Approx. 500e - 600e in the country, more again in the Dublin area

Mine is nowhere near as expensive. I pay €10 per bin lift. Have a full bin every 3 weeks or so, €3 per recycling lift, again every 3 weeks. so €220 total.

I live in a 2 person household though. Naturally bins will be higher for a large family, the same with utility bills.

smccarrick

smccarrick wrote: »

Not announced- but expected to be along the lines of 1,200 litres free per resident, per month- with anything in excess of this charged at 14c/15c per litre, alongside a 4 Euro monthly standing charge (connection fee). Again this is speculation- seems to be in the general ballpark though. At present we use about 400 litres per person, per day (incl. commercial water and all leaks)- so I don't think the seemingly generous 1200 litres per person will go very far................

Last I heard was we use a mean of 140 litres per person per day, that would give a mean of 4-5 grand a year in water charges per person with those numbers...

L1011

I would think that 100 a month would be a very high electricity bill. Mine's ~50 a month (gas heating & hob) on a 2 bed house, albeit I have gone a bit mad with low energy lightbulbs and so on - kitchen main lights are a total of under 20W for instance...

Scale that up a bit for a bigger house, clearly. There's up to 25% difference in charges between suppliers and plans at that (and for gas).

Gas bills are generally 4 months of about 60 a month and 8 months of about 15 a month for me - but I'm lead to believe this is quite low usage.

My bins were €252 for the entire year, no pick fees, albeit that was an introductory offer. 300 is more realistic than 600.

leahyl

This is very useful thread OP - thinking about all this myself at the moment cos I'm hoping to buy in the next year.

Cheers!:)

Villa05

Depreciation. Anyone care to put a yearly cost on redecorating, maintenence. I think landlords cost it @ 1 months rent. Owner occupiers may spend more, higher end fit out

L1011

Villa05 wrote: »

Depreciation. Anyone care to put a yearly cost on redecorating, maintenence. I think landlords cost it @ 1 months rent. Owner occupiers may spend more, higher end fit out

Owner occupiers are also more likely to take care of the fit-out, though. Obviously not all renters are destroying places (deposit loss risk) but it's still a factor.

In the past year I've probably spent about 2k on that kind of thing. Bed (cheap Argos tat) broke and a repair job only lasted a while so bought a new one; got a new TV purely because I wanted one; done some minor redecorating. Could have got away with paying less.

Garden type will actually bear a huge amount on this, if you've any at all. Surprisingly expensive things to keep looking well especially if complex.

quietsailor

1. Mortgage monthly repayments (with possible increase/decrease in interest rates)
That depends if your fixed/variable & how much you borrowed

2. Mortgage Protection (how much?)
I don't have this so can't help - sorry

3. Home Insurance (how much?)
As an owner occupier - €930 per year

4. Property Tax (currently €100 per year)

5. Bin Charges (anyone have a rough extimate?)
Greenstar in cork are just under €30 per month or €360 per year.6. Water Charges (again no idea how much yet?)

7. TV Licence (€180??..how much is it?)
€13.33 per month

8. Home maintenance (impossible to know how much annually?)
Put in €500 for a new fridge/washing machine/repair to the gutters etc - you get the idea. There will be something every year, trust me on this

9. Electricity Bills
Depends on you, depends on the house

10. Gas Bills
Depends on you, depends on the house

11. Property Management Fee's (affects plenty of people, hard to know average cost but could be in €1,000's annually)


If I've left anything out or if anyone knows roughly the average costs for some of the repayments please add to list as I just want to get an idea of what it costs these days.

If you have a garden will you maintain it yourself - if so you need to buy the implements. - that could be €200 - €300 for one year.
Boiler servicing - €80 for a gas boiler here in Cork city.
Septic tank inspection & servicing - if you have one.