I was speaking with a friend this week about how unprepared many first time home buyers are for the true costs of home ownership. When people set out to determine if they can afford a home the look at whether they can afford the mortgage payment including taxes and insurance. And, maybe they include the cost of utilities. But I don't believe most people consider whether they can afford the real costs of home ownership.

By that I mean that inevitably almost as soon as you move into a house something breaks down! And, generally speaking, repairs cost money. Each succeeding generation seems to get a little less handy, a little less knowledgeable about how to fix anything. That means calling a repair person when something breaks and shelling out your hard earned dollars for both the parts and the repair.

Houses need constant maintenance. If you have any hope of selling your home for more than you bought it for, you'll have to keep it in good condition. You'll have to paint regularly, clean gutters, have the furnace/air conditioner serviced and a host of other things. In a world where most of us have very little spare time this often gets contracted out. Again, you're talking about needing money to pay for that.

Very little is done to prepare people for the true costs of home ownership. Many people don't think about these things until they own a house and then wonder where they'll get the money when something breaks. Or, they live with the things that break and adjust accordingly and don't really think about it until they decide to sell. Then a real estate agent is going to come through and tell you that your home is unlikely to sell at the price you want until you fix those things.

The mortgage industry certainly isn't doing much to prepare people for these financial realities. And, in truth, neither are real estate agents. I think it's time to change that!