Housing · General financial education

Housing running costs

Housing costs more than the mortgage payment or the base rent. Running charges, maintenance and reserves belong in the same picture.

In more detail

Typical extra blocks: energy, water, insurance, service charges, maintenance, a repair reserve, taxes and levies depending on the country. One-off purchase or moving costs are a separate pot, not the monthly payment.

Background

Opportunity cost of tied-up equity and transaction costs on a sale can change the “return on housing” sharply. Which tax applies sits in the country pack, no German transfer tax as a UK rate. Finmon refers no estate agents.

An example

The payment is €1,200. Add €180 service charge, €90 for electricity and a reserve you set yourself for repairs inside your flat. Housing costs are then not €1,200.

A common misconception

Housing costs equal the mortgage payment.

Payment plus running costs, maintenance, tax, reserves and often opportunity cost.

Source: CFPB · Owning a home. Last reviewed: 2026-11-09. Editorially reviewed on 2026-11-09. Next review 2027-11-09. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.