What are all the Monthly Expenses for a House in Raleigh North Carolina ?

Question

Hello Everyone,

I hope you're having a great day!

My name is Travis. I'm 29, and I've never owned a house before. I'm looking to buy a house in Raleigh, North Carolina, and I wanted to figure out all the monthly expenses, including utilities, that I'll have to pay for when owning a home.

Below is a list of monthly expenses I've identified so far. I'm wondering if I'm missing anything:

Mortgage (20% down, so no PMI)
HOA
Electricity
Gas (None, as the new construction house has an electric stove—everything is electric)
Water Bill
Camera Security System
Internet
Lawn Care
Regular Maintenance

Questions:

Will I need to pay for trash?
Will I need to pay for sewer, or is this included in the water bill?
Am I missing anything else?

I appreciate any help.

Thanks!

Chris Martin · Answer

If you are in the city of Raleigh, the water bill includes trash and sewer. You will also be paying for: - Recycling - Stormwater - Yard Waste - Water Base Charge - Watershed Protection - Water Infrastructure Replacement Charge - Waste Water Base charge - Waste Water Infrastructure Replacement ChargeThe "overhead" charges currently total $49.94. Below is a bill from a house I sold earlier this year. I took the name and address off, but you can see the line items and charges as listed above. If you are outside the city, many houses have well and septic. There are no monthly charges for well and septic, other than minimal electrical usage. Make sure you get a septic inspection before closing since replacement cost can be expensive.

Avery Heilbron · Answer

Hi @Travis Oneill I am a realtor in the area and would be happy to help you navigate the market. I will send you a PM

Benjamin Carver · Answer

Hey Travis! Are you doing a rental, house hack, or just a primary?

Benjamin Carver · Answer

I saw you were going new construction. One more thing to keep in mind Travis. Get clear with builder on property taxes as they can go up in year 2 quite a bit in some cases. Just something to be aware of. Definitely reach out when you get closer, I do a lot of new construction dealsInitial Assessment Based on Land Only: In the first year, property taxes may be based primarily on the value of the land, as the construction may not have been fully completed or assessed by the time property taxes were calculated. Once the home is completed and reassessed, the full value, including the structure, is taken into account, leading to a higher tax bill. Happens more than you'd think.Partial Year Assessment: If the home was completed partway through the year, which is usually the case, the first year’s tax bill might reflect only a partial assessment. The tax authority may have only assessed the value of the completed portion or the property for part of the year. In the second year, the property is taxed for the full year.

Travis Oneill · Answer

Thank you @Clayton Silva for that information. I am from New York and looking to move to Raleigh, NC. This information is greatly appreciated. I actually stayed in the Fayetteville area last week when I interviewed for my job in Raleigh. Downtown Raleigh is amazing! I love that area. I think this post you made clarifies enough for me. Thanks again.

Clayton Silva · Answer

My pleasure!

Clayton Silva · Answer

This is a pretty good list. I have a few rentals in the Fayetteville area. Only thing I would add is that typically, water/sewer/trash are often all one utility depending on what part of the town/state you live in. For example there are 3 or 4 major utility companies just inside of Fayetteville and it seems like each property has a different structure/utility company.Other expenses = major capex (roofs, plumbing, flooring etc go bad eventually so I would save a monthly amount in a separate account for when these happen). I would generally try to avoid insurance claims if you can because insurance is getting out of control nationwide, and we are seeing in FL, TX and CA that claims can follow the house and/or you and make it very difficult to sell the home in the future.Within the mortgage expense category you have 4 separate charges: principal, interest, property taxes, insurance (if you escrow taxes and insurance which 95% of our clients do). When buying a house or refinancing, you will have closing costs. (Typically estimate between 2-3% of the loan amount in closing costs: appraisal, credit report, points/origination, underwriting/processing fees, title fees, prepaid taxes and insurance etc)I am sure there are others I am not remembering

Travis Oneill · Answer

@Benjamin Carver Greatly Appreciated. Thanks for this information. I definitely need to keep this information in mind for the potential property tax increase.

Travis Oneill · Answer

@Benjamin Carver hey Benjamin I'm looking to buy as a primary residence but I'm still waiting on getting a job offer First.

Travis Oneill · Answer

@Chris Martin Thank you! This information is Greatly Appreciated.