The Hidden 40%

Everyone budgets for the mortgage payment. Almost nobody budgets for the rest. Property taxes, homeowner's insurance, maintenance, repairs, HOA fees, and utilities above renting levels add roughly 30-50% on top of your mortgage, depending on location and home age.

The classic guideline says to budget 1-2% of your home's value annually for maintenance alone. On a $400,000 house, that's $4,000-$8,000 per year — money you never spend as a renter. And that's just the average. Roofs, HVAC systems, and foundations don't fail on schedule.