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THE ANNUAL COST of owning and maintaining a family home has risen by over 3% in the last 12 months to €16,169.15.

That equates to about 43% of the current average national wage, according to figures released by AA Ireland today.

However, it’s about €5,000 less than 10 years ago.

Every year, the AA analyses expenses related to owning and running a home, such as mortgage costs, property tax, heating and other bills.

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 €215,000 during the third quarter of 2016 to €228,000 in the third quarter of this year.

Source: AA Ireland

Those who took out a 90% mortgage this year are likely to pay out €9,866.02 per annum – an increase of 4.48% on last year.

Speaking about the findings, Conor Faughnan, AA Director of Consumer Affairs, said: “The big story for 2017 has been rising house prices and increased difficulty for those trying to get on the property ladder this year. However, for those fortunate enough to already own a home 2017 hasn’t seen any major increases across the range of bills an average homeowner will face.

For new buyers the concern is that house prices are going up, especially in Dublin. However, one thing this piece of research does demonstrate is the effectiveness of shopping around.

“Across all the bills we factor into this study you’ll see considerable variations between competitors. Spend a little time on the research and it can certainly save you money.”

Negative equity

While the AA bases its calculations on the expenses of a new buyer, there is also the so-called negative equity generation – homeowners who bought their house at the peak of the boom.

The AA gives figures for that group too, assuming the house was bought in 2007. That cohort currently pays €5,172.74 more per year on their mortgage repayments than people who purchased their homes in the second quarter of this year.

Source: AA Ireland

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 €1,246.83 each year to keep up with wear and tear (a marginal annual increase of 0.5%). This figure equates to almost 8% of the overall estimated cost of owning and running a home.

Taking average usage figures, the AA estimates that homeowners will spend €707.75 (+2.3%) heating their three or four-bedroom home this year and a further €857.81 (+9.88%) on electricity.

Other costs included in the study were: home insurance (building and contents combined), calculated at about €547.81; telephone and broadband bills at €468.66; property tax at €405; household appliances at €573.82; household cleaning products at €281.85; and domestic refuse collection at €304.51.

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