The Best Ways To Spend on Your Home If Property Taxes and Utilities Keep Rising
If you're trying to get ahead of fixed costs on your property, an ounce of prevention is worth a pound of cure.
As property taxes, utilities and insurance premiums steadily rise, homeowners are under pressure to decide where spending actually pays off. Sometimes spending money on key areas can reduce long-term ownership costs instead of adding new ones.
Experts discuss the best money you can spend to bring these costs down.
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Reducing Recurring Costs
When both property taxes and utilities are climbing, the most effective spending often doesn't involve a renovation at all, according to Colton Pace, founder and CEO of Ownwell. He pointed out that many homeowners overspend on upgrades while ignoring property taxes, even though taxes are one of the largest and fastest-growing costs of ownership.
"The most reliable way to offset rising ownership costs … is controlling recurring expenses like property taxes that compound every year," he said.
Ways to do this include making sure you're paying fair property taxes by claiming any homestead exemptions you qualify for and appealing a potentially inflated assessment.
"Those moves often cost little or nothing up-front and can deliver recurring savings," he said.
You can focus on low-cost efficiency improvements that lower utility usages like smart home technology or taking advantage of your city's electric or water tracking software.
Lowering Baseline Energy Use
Once recurring costs are addressed, the next best dollars are those that permanently lower how much energy a home needs to function, according to Manny Kavouklis, president of CMK Construction Inc. He said homeowners should prioritize air sealing, simple insulation and energy-efficient HVAC systems.
These upgrades reduce utility bills every month and become more valuable as rates rise, he said. Attic insulation can save homeowners 15% to 20% on cooling costs or between $300 and $600 per year, while sealing around windows and doors properly can save another $500 to $1,000, he noted.
Preventing Costly Damage and Insurance Spikes
As insurance premiums rise alongside taxes and utilities, preventing damage becomes a powerful form of cost control. Sherri Flaherty, broker and owner at Realty ONE Group Platinum, said that homeowners should prioritize investments "that reduce risk and ongoing operating expenses rather than focusing on cosmetic or trendy upgrades."
However, long-term upgrades, such as maintaining an aging roof, proper drainage and water-leak prevention systems are a good investment because they prevent catastrophic losses that can drive up repair bills and insurance costs, Flaherty said.
Kavouklis recommended hurricane-rated windows to lower insurance rates and potential damage for people in regions with these kinds of risks.
It Depends on When You Use Power
In areas where the price of energy is tied to the time of use, such as surge pricing, Sequoya Cross, vice president of energy storage for Briggs & Stratton Energy Solutions, recommended installing battery backup systems (typically tied to solar panels).
"The best time to use this stored energy is when the utility charges the most — aka during peak hours," she said.
Fix Fundamentals First
When it comes to spending on reducing energy costs and taxes, prioritize "invisible fundamentals" over "investing in visible technology," Flaherty said.
When property taxes and utilities keep rising, the best money homeowners can spend is that which stabilizes costs. The highest-return dollars go toward controlling recurring expenses, lowering baseline energy use and reducing the risk of expensive surprises later.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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