What are the long-term costs of home ownership?

Those who buy a home in 2026 often celebrate the moment of the key transfer as the end point of a financial process. In reality, however, this is the starting point of a decades-long series of expenses that go far beyond the monthly mortgage interest and repayment. The Total Cost of Ownership (TCO) of a home is often underestimated in the Netherlands. While the value of real estate usually increases in the long term, the costs of maintaining that value and ensuring home comfort are considerable.

At a time when climate adaptation, aging and technological innovation are redefining the housing market, it is essential to identify the long-term costs of home ownership. This article highlights the financial obligations you can expect as an owner over a period of 10, 20 or 30 years.

Scheduled and major maintenance

Maintenance is the most constant factor in home ownership costs. A home is subject to natural wear and tear due to weather, wind and use. In 2026, experts will use the rule of thumb that you average annually 1% to 1.5% of the rebuild value the property must be reserved for maintenance.

• The 10-year cycle: Within every ten years, you will have to deal with exterior painting, maintenance of dormers and replacing sealant in wet areas.
• The 25-year cycle: In the longer term, the really big posts await. Think of replacing the roof covering, renewing the joints in the façade or remediating the sewerage system under the house. For an average family home, these interventions may amount to between €15,000 and €30,000 per project.

The price of the energy transition and sustainability

In 2026, sustainability will no longer be a choice, but a necessity to keep the home sellable and affordable. The long-term costs of home ownership now include the replacement cycle of sustainable installations.

Where a traditional boiler lasted fifteen years, today's complex heat pump systems also require periodic maintenance and eventual replacement. In addition, you must take into account the degradation of solar panels; after 20 to 25 years, the efficiency decreases and inverters often have to be replaced earlier. The costs of keeping the energy shell of the home (insulation and installations) up to date are a recurring investment that is essential to keep operational costs (the energy bill) low.

Long-term municipal and state taxes

As an owner, you are a source of income for the government. The tax charges are not static and often increase with the value of your home.

• Property Tax (OZB): As the WOZ value increases, the OZB also rises, unless the municipality lowers the rate. Over a period of 30 years, this represents a cumulative burden of tens of thousands of euros.
• Private home flat rate: This is a tax addition to your income. Since the phasing out of the “Hillen Act” in 2026, homeowners with a (almost) repaid mortgage have also been paying more and more tax on their enjoyment of living. This is a structural cost that will weigh more heavily the longer you live in the home and the debt decreases.

Modernization and aesthetic depreciation

In addition to technical maintenance, there is economic ageing. A bathroom or kitchen that will be ultra-modern in 2026 will be considered dated in fifteen years. Periodic aesthetic upgrades are necessary to maintain the home's market value.

A kitchen has an average lifespan of 15 to 20 years; a bathroom is often slightly shorter due to the moisture-sensitive environment. In 2026, the costs for these modernizations will range from €15,000 to €40,000. Although you can postpone these expenses, this is immediately reflected in the resale value or daily living pleasure. In the long run, you should include these “facelifts” as part of the cost of ownership.

Insurance and Risk Management

The costs of insuring ownership are increasing. Home insurance is essential for an owner. In 2026, we will see that premiums will increase due to the increased rebuild value and the greater risks of damage caused by extreme weather.

Over a period of 30 years, an average home owner pays thousands of euros in insurance premiums. In addition, there are often costs for prevention, such as having the electrical installation periodically inspected or maintaining security systems. These expenses prevent major financial blows in the event of emergencies, but are a constant stream of expenses that increase the “rental value” of your own home.

Interest expenses over the entire term

Although mortgage rates are often seen as a monthly expense, in the long run, it is the price you pay for owning. With an annuity mortgage, you mainly pay interest in the first years. Over the entire 30-year term, depending on interest rates in 2026, you often pay between 40% and 70% of the original principal amount extra at the bank. These are the “invisible” costs of ownership that only become really clear when you make a comprehensive overview of all payments over the life of the loan.

The long-term costs of home ownership require strategic financial planning. It is not enough to bear the monthly costs; a successful home owner in 2026 builds buffers for the inevitable replacement cycles and takes into account a changing tax landscape. Ownership is an investment, but one that requires a constant flow of capital to maintain its value and function.