Boom time buyers still paying the price for bubble

Recent home buyers are more than €6,000 a year better off than those who bought in the boom, according to a new survey.

The cost of owning and running an average-priced home bought at the height of the bubble in 2007 is €22,012 a year. This compares with €15,655 for homes bought in the third quarter of this year, according to the third annual household costs survey released by the AA.

The average price of a second-hand home in the third quarter of this year was €193,000, up from €170,000 over the same period in 2013.

The survey includes mortgage costs, heating, phone, broadband, kitchen appliances, insurance, TV licence, bin charges, and the property tax.

It puts the average cost of owning and running a home at €16,432 a year or 46 per cent of the average wage of €35,830.

Heating costs

The survey shows the cost of heating a home with gas fell 21 per cent, €272, year-on-year, but there was a €156 rise in electrical bills. The average cost of telephone and broadband packages fell 11 per cent, or €41,while a basic digital TV package was up €9 (3 per cent).

While the average property tax in 2014 is put at €315, the same as last year, it looks certain to rise along with property prices. Domestic water charges will also add close to €300 on to the annual costs next year.

"While you're locked into certain costs such as your TV licence, mortgage repayments and property tax you can certainly look for better value when it comes to the services you consume," said the AA's Conor Faughnan.

“When there are multiple players in the market, be it waste collection, electricity or insurance, they are all vying for your business so make sure to shop around.”