The One Changing Expense That Could Wreck Your Budget as a Homeowner

Leave yourself wiggle room, just in case.

When my husband and I bought our home a little over a decade ago, we figured we'd get a few good years before repairs started popping up. Not only did our home include a builder's warranty (which didn't end up being worth much since our builders didn't make good on it, but that's another story), but because all of our appliances were brand new, we were protected from things like having to fix our air conditioning system, fridge, and so forth for a number of years.

But sure enough, as time went by, we found that our housing expenses did indeed creep upward. And thankfully, we always made sure to add extra money to our savings to account for that.

But while repair costs are part of the reason our home has gotten more expensive through the years, they're not the only reason. There's another large homeownership expense of ours that's soared since buying our home -- and it has the potential to keep climbing.

Beware a rising property tax bill

Although my husband and I have only been in our home for about 13 years, our property tax bill is now about $8,000 higher than it was when we first signed our mortgage. Now you may be thinking, "How on earth is that even possible?" Well, welcome to the great state of New Jersey, which boasts the highest property tax bills in the nation.

Part of the reason our bill has climbed so much is that homes in our area are reassessed frequently -- as often as once a year. And each time your home undergoes an assessment, your property tax bill has the potential to rise.

In many states, you're not going to see a property tax hike of $8,000 over the course of 13 years. In fact, in many states, you're not even going to pay $8,000 in property taxes unless you buy a mansion. (To be clear, we own a pretty average house -- taxes are really just that high where we live.)

But still, if you're buying a home, it's important to be mindful of the fact that your property tax bill could rise. And it's important to leave yourself some wiggle room in your budget in case that happens. Otherwise, you could end up falling behind on your bills if your property taxes rise substantially from one year to the next.

Can you fight a property tax hike?

Absolutely. But whether you'll win or not is the problem. When home values rise on a whole, it's easy to make the case for a higher assessment value. And that can directly send your property taxes soaring.

Even during periods when home values largely stay the same, over time, the value of your home could increase. And that could lead to a higher property tax burden.

So if you're looking to purchase your first home and are thinking of making an offer on a property that's at the very top of your budget, maybe reconsider. You want to leave yourself some leeway in case your property taxes rise shortly after moving in. And if you think that can't happen, you'd best think again.