AA finds cost of running a home is up 3% to €16,169 per year
Energy costs saw a big jump over the year.
Each year, AA Home Insurance works out the cost of owning and maintaining a family home in Ireland - and this year’s report shows this cost has risen by over 3% in the last 12 months.
The cost of owning and maintaining a family home now stands at €16,169.15, which comes to about 43% of the current average Irish national wage.
What factors are included in the cost of running your home?
The likes of property tax and mortgage payments are calculated based on the current average property price. As such, it’s no surprise to see an increase in costs, as the national average price of a second hand home in Ireland has increased from €215,000 to €228,000 year-on-year.
Increase in the cost of energy
The AA found an increase in overall energy costs, saying the cost of heating the home is up 2.3% year-on-year and electricity costs are up almost 10%.
And with price increases on the way from seven of Ireland’s energy suppliers, these costs only look set to increase further.
The research demonstrates “the effectiveness of shopping around”
Speaking about the findings, AA’s Director of Consumer Affairs, Conor Faughnan, said “one thing this piece of research does demonstrate is the effectiveness of shopping around.”
He added: “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.”
Indeed, there are huge discounts to be had for new customers on broadband, phone and TV deals, as well as gas and electricity plans. And it’s also possible to make savings by switching to a SIM-only mobile phone deal.
Other things to consider
The AA says that ‘maintenance, repair and contingency funds’ is one of the biggest expenses for Irish householders, coming in at €1,246.83 each year.
If you have recently bought a home, it would be worth thinking about setting up a savings account to make sure you have the funds to cover these expenses, without needing to resort to borrowing.
Things like the television licence (€160 per year) and property tax came in at around the same price as last year. If you struggle to meet these payments in one lump sum, investigate the possibility of paying these costs off monthly instead - it could be a good option that would help you to budget.