The Hidden Costs of Homeownership: What Buyers Often Miss
Featuring Kyle Guldenpfennig (#TallMoneyMan) and Charlie Chedester | The Lofty Lender Podcast
When you're dreaming of owning a home, you're usually thinking about your down payment and monthly mortgage—but that’s only part of the picture. In this week’s episode of The Lofty Lender Homebuyer Education Podcast, I sat down with seasoned real estate expert and my good friend Charlie Chedester to dig into the hidden costs of homeownership that buyers often overlook.
Whether you’re a first-time buyer, move-up buyer, or investor, this is an essential conversation that can help you avoid financial surprises down the road.
1. Beyond the Mortgage: What Else You’re Paying For
Yes, you’ve probably crunched numbers on your mortgage, down payment, and maybe even insurance. But Charlie and I laid out the full picture:
Property taxes & homeowners insurance – these aren't fixed forever and often increase.
HOA dues – can be shockingly high, especially with condos, and must be factored into monthly affordability.
Utilities – older or larger homes often carry higher costs.
Furniture & appliances – that new couch or smart fridge adds up.
Annual services – pest control, gutter cleaning, lawn care, HVAC maintenance, etc.
We compared it to car ownership—buying the car is just step one. It’s the ongoing maintenance, fuel, insurance, and unexpected repairs that really define your ownership experience.
2. Budgeting for the Unexpected
One key takeaway we emphasized is planning for ongoing and emergency expenses. Homeowners should budget 1–3% of the home's value annually for maintenance and have a homeowner emergency fund set aside for when things go wrong—because they will.
And if you’re tight on savings, consider setting up a home equity line of credit (HELOC). It’s an affordable backup option that can prevent you from digging into high-interest credit cards during an emergency.
3. Track Your Home’s History
Write down what you’ve replaced and when—roof, siding, furnace, appliances. Use your Notes app, a spreadsheet, or even a permanent marker on the equipment itself. It’ll save you a ton of time and stress when it’s time to sell or service your home.
4. Don’t Waive Inspections
We addressed a growing trend: buyers skipping inspections to make their offers more competitive. We get the urgency, but risking tens of thousands of dollars to save a few hundred on an inspection is rarely wise. As Charlie put it, you're not betting $400 to win $400—you’re protecting $10K–$20K+.
5. Avoid Maxing Out Your Budget
Just because you're approved for a $2,500/month mortgage doesn’t mean you should take it. The bigger the home, the bigger the costs—utilities, furniture, taxes, and more. Leave yourself room to breathe financially, especially if you want to live life outside your four walls.
"Not maxing out your budget today gives you freedom tomorrow." – Kyle #TallMoneyMan
Final Thoughts
Owning a home is rewarding—but it comes with responsibilities that go beyond your mortgage statement. Budgeting wisely, tracking your maintenance, and planning for the unexpected will help you enjoy your home without becoming house poor.
🎧 Catch the full episode now!
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