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Running a house now costing over €17k p.a.

RECENT research from AA Ireland indicates that we are slowly moving back towards 2007 levels when it comes to the cost of keeping a house. Owning and running a house in Ireland each year has jumped by more than €1,000 since 2018, according to the research.
The average homeowner in Ireland is now spending over €17,000 on owning and maintaining their house. That equates to about 43% of the current average national wage. Every year, the AA analyses expenses related to owning and running a home, such as mortgage costs, property tax, heating and other bills.
Undoubtedly, mortgage repayment costs outweighs all other outgoings. The increase in the cost of running a home comes following a rise in the national average price of a second-hand home in Ireland. Values increased from €243,000 during the third quarter of 2018 to €269,000 in the third quarter of this year. Those who took out a 90% mortgage this year are likely to pay out €11,000 per annum – an increase of 9.45% on last year.
Conor Faughnan, AA Director of Consumer Affairs, said: “While we’re still significantly off the peaks seen during the Celtic Tiger, house prices have continued to surge in the past 12 months representing a major issue for both those looking to acquire their first home and those trying to meet their monthly mortgage repayments. In fact, the increase in monthly mortgage repayments almost single-handedly accounts for the over €1,000 increase in home running costs that we have seen this year. This is offset slightly by some drops in prices for electricity and broadband TV.” The calculations are based on the expenses of a new buyer but we must also take cognisance of those who bought in 2007 and still likely to be in negative equity. This grouping currently pays €4,653.48 more on mortgage repayments than those who have just bought recently.
The second single most expensive bill for homeowners is in relation to maintenance, repair and contingency funds. The AA estimates that the average homeowner is likely to spend or set aside €1,246.35 each year to keep up with wear and tear (7% of the overall estimate).
Taking average usage figures, the AA estimates that homeowners will spend €815.72 (+3.79%) heating their three or four-bedroom home this year and a further €999.79 (-5.54%) on electricity.
Other costs included in the study were: home insurance (building and contents combined), at about €570.95; telephone and broadband bills €420; household appliances at €554.86; household cleaning products at €340.94; and domestic refuse collection at €300.72.
Overall, the cost of owning and running a home has increased by almost €2,000 p.a. from the third quarter of 2015.