The Hidden Costs of Homeownership in Central Texas
By Cat Totty | The Totty Team at Cardinal Financial
Buying a home in Central Texas is exciting — but many buyers focus only on the purchase price and mortgage payment, without realizing there are other costs that can significantly impact their monthly budget.
From Georgetown and Round Rock to Jarrell, Belton, Killeen, Temple, Salado, Waco, and Austin, each community comes with its own set of expenses. Some are obvious, and others don’t show up until after you’ve moved in.
Understanding these hidden costs ahead of time can help you choose a home that truly fits your lifestyle and long-term goals.
Property Taxes Vary More Than You Think
Property taxes are one of the biggest hidden costs in Texas — and they vary widely by location.
Two homes with the same purchase price can have very different tax bills depending on:
City and county tax rates
School districts
New construction vs resale
Whether the property is in a MUD or PID
In Central Texas, moving just a few miles can change your tax rate significantly, which directly impacts your monthly payment.
Why it matters:
Higher taxes can add hundreds of dollars per month to your housing cost — even if the home price stays the same.
HOA Fees Add Up Over Time
Many Central Texas neighborhoods have Homeowners Associations (HOAs), especially newer developments.
HOA fees can cover:
Common area maintenance
Amenities like pools or parks
Exterior upkeep or landscaping
While HOAs can provide value, they also add to your monthly or annual expenses — and fees can increase over time.
What to watch for:
Monthly vs annual dues
Special assessments
Restrictions that may impact how you use your home
MUDs and PIDs Can Increase Your Monthly Costs
Many newer communities in Central Texas are located in Municipal Utility Districts (MUDs) or Public Improvement Districts (PIDs).
These districts help fund infrastructure like:
Roads
Water and sewer systems
Utilities and drainage
While MUDs and PIDs support growth, they often result in:
Higher property tax rates
Additional fees tied to the district
These costs are frequently overlooked but can significantly affect affordability.
Utilities Aren’t the Same Everywhere
Utility costs can vary more than buyers expect, especially in Central Texas.
Factors that affect utility costs include:
Water district or provider
New construction vs older homes
Lot size and landscaping
Local infrastructure
Water bills, in particular, can vary widely depending on the community and usage requirements.
Why it matters:
Higher utility costs can impact your monthly budget just as much as taxes or insurance.
Maintenance and Long-Term Costs
Owning a home also means planning for:
Routine maintenance
Repairs over time
Appliance replacement
HVAC servicing
Even newer homes require upkeep, and older homes may need more frequent repairs. These costs aren’t part of your mortgage payment, but they’re part of responsible homeownership.
Why Looking at the Full Picture Matters
A home can look affordable on paper but feel very different once all costs are considered.
That’s why it’s important to look beyond:
Purchase price
Interest rate
And consider the full picture:
Taxes
Insurance
HOA fees
MUD or PID costs
Utilities
Maintenance
Work With a Real Estate Team That Looks at What Makes Sense for You
Every buyer’s situation is different. What works for one family may not work for another.
That’s why working with a trusted real estate agent and a knowledgeable mortgage lender is so important when buying in Central Texas. A good team helps you:
Compare communities, not just homes
Understand how location affects long-term costs
Review monthly expenses realistically
Choose a home that fits your lifestyle and financial goals
At The Totty Team at Cardinal Financial, we believe the best decisions come from clear information — not surprises after closing.
Buying in Central Texas? Let’s Plan Ahead.
If you’re thinking about buying in Georgetown, Round Rock, Jarrell, Belton, Killeen, Temple, Salado, Waco, or Austin, I’d love to help you understand the full cost of homeownership and create a mortgage plan that truly fits you.
Cat Totty
The Totty Team | Cardinal Financial
Because the best home is one you can enjoy comfortably — today and long-term.
