Don’t Forget to Factor in these Extra Costs of Owning a Santa Cruz Home

Posted by Lauren Spencer on Friday, June 14th, 2013 at 1:01am.

Paying for the mortgage isn’t the only expense that you will need to consider when you are buying a Santa Cruz home. There are many other costs that you will have to think about and these can come as a shock if you haven’t planned ahead for them. Some very enthusiastic first-time homeowners will gloss over these costs and later find out that their budget and paycheque is overwhelmed.

Here are a few of the costs that you should consider when you are becoming a homeowner for the first time.

Moving Costs

Once the home purchase is complete, you will have a whole new wave of additional costs concerned with moving into your new home. You might be able to ask your friends for a favor, but usually you will have to spend thousands on a moving company to transport all of your things. You will also have to pay for gas to drive to your new home and perhaps also cover the cost of a hotel stay on the way if you are moving across the country.

Real Estate Taxes

The amount of real estate taxes that you pay will vary depending on the state that you live in. In some high tax states such as Texas you will pay up to 2.98% of your home’s value per year. If you live in a low tax state such as Louisiana, you may only pay 0.17% of your home’s value per month.


Don’t forget that you will also need to pay for your heating costs in winter, air conditioning in summer and your lights and internet all year round. Your utilities can really add up, so if you don’t factor them into your budget you will be in for a nasty surprise.

Home Maintenance

You will also need to factor in the costs of repairing your home, such as when an appliance needs to be replaced or something needs fixing. A general rule of thumb is that every homeowner should budget at least 1% of the purchase value of the home to cover remodelling and home maintenance.

Also, don’t forget about landscaping and lawn care. If you pay a landscaping company to take care of your property it could cost around $30-$50 per week. If you do it yourself the costs will be lower, but you will need to pay for the equipment and supplies and spend a lot of your valuable time.

Interest on Your Mortgage

When you are considering your budget for homeownership, you will also need to factor in the amount that you will pay in mortgage interest over the duration of the home loan. The interest rate on your mortgage will of course change over time, depending on the mortgage that you select.

These are just a few of the extra expenses that homeowners need to factor into their budget when buying their first Santa Cruz home.

If you have any more questions about home ownership, call me at 831.662.6522 or email me at
For additional real estate information, please visit my home page at

moving into your new home
really add up
do it yourself

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

Join Lauren On Social Media

Leave a Comment