The Hidden Costs of Owning a Home in Lexington

By Bob Sophiea

Founder and CEO of New Home Collective, established the company in 2014 with a mission to revolutionize the real estate industry.

Everybody loves to talk about the benefits of owning a home in Lexington: there’s the equity, the stability, and that pride you feel when you walk through your front door knowing it’s yours.

But here’s the part no one tells you: homeownership comes with some hidden costs that can catch you off guard if you’re not prepared. Today, I’ll pull back the curtain on the three biggest expenses most buyers overlook and share a few tips to help you plan ahead.

1. Property taxes. A lot of first-time buyers are surprised to learn that property taxes never go away, even after the mortgage is paid off. In Lexington, our rates aren’t extreme compared to big cities, but they still add up.

If you’re buying a $300,000 home, expect roughly $3,000 a year in taxes, which is about $250 a month added to your housing cost. And those numbers can rise over time as property values increase or the city adjusts tax rates.

The money goes toward local schools, fire departments, public safety, and roads, all important stuff, but you’ll want to plan for those increases long-term.

2. HOA fees. Over 70% of new construction homes in Lexington come with a homeowners’ association (HOA). These communities look beautiful and well-kept because the HOA dues help maintain landscaping, clubhouses, pools, and entrances.

However, that comes at a price. Some neighborhoods might charge $25 a month, while others charge $100, $200, or even more, depending on the amenities. And here’s the thing, HOA fees are mandatory, and they often rise over time.

Before you fall in love with a shiny new neighborhood, make sure you understand the cost, what’s included, and if the fees are likely to increase. I’ve seen buyers move in excited, only to realize later that their $200 monthly HOA fee feels like another car payment.

3. Repairs and maintenance. When you rent, your landlord covers the repair costs. When you own, you are the landlord. Here in Lexington, the big-ticket items can get pricey fast:

● HVAC system: $5,000–$10,000

● Roof replacement: $8,000–$15,000

● Water heater: $1,200–$1,800

Even small fixes add up over time. That’s why I recommend setting aside about 1% to 2% of your home’s value every year for maintenance. On a $300,000 home, that’s $3,000 to $6,000 a year. Some years you won’t spend it, but when something big breaks, you’ll be glad you saved it.

I’ve seen homeowners stretch their budget too thin, only to be caught unprepared when repairs hit. Don’t do that and leave some breathing room in your budget for the unexpected.

Bonus: The cost of time. Owning a home is both a financial investment and a time investment. Mowing the lawn, cleaning gutters, painting, snow removal, it all takes hours every month. If you’re handy, that’s great. If not, you’ll either need to learn or hire help, and both cost something.

 Property taxes, HOA fees, and maintenance; these are the hidden costs that separate homeowners who thrive from those who struggle. However, owning a home is still one of the best ways to build long-term wealth and stability.

The key is to go in with your eyes wide open. Plan for these costs now so you can enjoy the rewards later. I’d love to walk you through what to expect and how to budget smartly for your situation. Book a call with us through this link: callnhc.com. You can also contact us directly at (859) 721-2200 or bob@nhc.com.

You can also join my Living in Lexington, Kentucky Facebook group called Living in Lexington, KY, to ask questions and see what real life here is like.