House prices in Ireland are currently at record levels and this is forcing most people to borrow right up to their limit which the Central Bank rules allow. This means your mortgage is going to be roughly 1/3rd of your take-home pay.
With that in mind, you need to carefully plan and budget the monthly cost to run any house you are interested in buying. There are numerous costs, in addition to a mortgage, associated with running a property. If your house were a business, these would be considered "operating costs". These are the costs required to keep your house operating normally.
In some cases, you might be able to reduce these costs by changing to a cheaper supplier or by cutting back on your usage, but for the most part, they are bills you need to pay.
When you are caught up in the excitement, stress, and frustration of the house-buying journey, it can be very easy to overlook the costs you'll be paying from the first month you own a home. So let's take a look at those costs!
EXAMPLE
We'll start with this 183-square-meter bungalow in Moycullen, Galway with a D2 BER.
Using a Home Hunter Report, we can see the Local Property Tax will be €405 per year (€33.75 per month).
Then the estimated energy cost for a detached property this size and with a D2 rating is between €2850 and €3800. So let's split that down the middle and say €3300 (€275 per month).
Using some online comparison tools, we can get Mortgage Protection for €20 a month (minimum cover), House Insurance for €32.50 per month, Broadband & TV Package for €70 per month and bins for €26 per month.
We get a total of €457 per month. This is before any other costs like online subscriptions, monitored alarm, car loans, car insurance, motor tax, petrol/diesel, and food.
These are also the very minimum costs and most people would tend to go for a higher level of cover or higher Broadband & TV packages.
Expense | Yearly | Monthly |
Mortgage Protection | €240 | €20 |
House Insurance | €390 | €32.50 |
Local Property Tax | €405 | €33.75 |
Energy Costs (Electricity & Gas/Oil) | €3300 | €275 |
Broadband & TV | €840 | €70 |
Bins | €312 | €26 |
Management Company (if applicable) | n/a | n/a |
Totals | €5487 | €457.25 |
Depending on the property you buy, these costs can range from around €400 per month to over €1000 per month. For most people, this can be the difference between living comfortably and struggling from payday to payday.
This is why at Home Hunter Report we think it is vital you are away of all the costs associated with running a property so you do not get any surprised after you have your keys.
So every Home Hunter Report comes with a breakdown of estimated energy costs and the Local Property Tax rate for the property.
To get a Home Hunter Report, just go to HomeHunterReport.ie and enter the Eircode of the property for sale.