“Hidden” costs can significantly increase the financial burden of homeownership in Los Angeles and Orange counties.
Zillow has brought to light these ownership expenses. To me, the figures highlight what’s better dubbed “sometimes ignored” costs, especially when considering affordability hurdles for house hunters. We’re talking maintenance, property taxes and insurance.
According to Zillow, a typical household budget for an LA-Orange County homeowner should also include an additional $1,610 for these hidden cost. The region’s extra housing costs rank sixth-highest among 30 large metropolitan areas studied nationwide.
Using Zillow’s home value estimate for LA-Orange County and a 6.4% 30-year loan — assuming a 20% down payment – a typical buyer today would face an estimated monthly payment of $4,794 on a $949,000 residence. That’s the second-highest payment among the 30 markets tracked. No. 1 was San Francisco, by the way.
So, hidden costs boost housing costs by 34% to $6,404, also No. 2 nationally.
Financially speaking, ownership is more than just repaying the lender. Zillow highlights costs that persist even if you pay cash for a home or paid off your home loan.
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