11 Countries Where Owning a Home Will Drain Your Savings

This post may contain affiliate links.

Owning a home is many peoples’ idea of financial stability, a dream that assures you of a roof over your head and security. In countries where costs can soar beyond imagination, homeownership isn’t all roses and sunshine. Owning a home in some nations is like pouring your savings into a bottomless pit, from sky high property taxes to crushing mortgage rates. The dream of homeownership looks like a nightmare for many.

In these places around the globe, buying and maintaining a house costs more than commitment—it takes a fortune. It’s not just expensive real estate costs that keep rising, there’s also the additional costs that are added on top of that and leave the homeowner with little else to live on. Where are these places? Let’s take a look at countries where owning a home can be such a drain on the wallet.

Australia

Breathtaking beaches and a laid back life style comes at a very expensive price in Australia. For example, Sydney is regularly listed as one of the world’s least affordable cities for housing. Sydney’s median house price was more than 15 times the median household income, according to the Quantiphy.com.au report. Then, add property taxes, insurance and maintenance to the mix, and you’ve got a recipe for financial exhaustion. Even smaller cities like Hobart are getting on the bandwagon, leaving locals fighting to maintain their homes without blowing their savings.

United States

Homeownership is now a Herculean task in the land of opportunity, especially in cities like San Francisco, New York, Los Angeles. Nationwide, the median home price has topped $400,000, and in coastal cities, it’s often double or tripled that. Add in the rising cost of utilities and homeowners association fees, and many Americans are growing tired of owning a home because it’s just becoming too much of a financial strain.

United Kingdom

Cobble stone streets and historic architecture aren’t cheap. In the UK, property prices have outpriced wages for years — particularly in London. Statista recently found that average first time buyers now need a deposit of more than £50,000 to get a foot on the property ladder. For homeowners, stamp duty taxes, maintenance for older homes and costly council taxes are just a few more to add to those woes.

New Zealand

These 10 Countries Are Beating the U.S. in Quality of Life — Image Credit: QFSE Media/Wikimedia Commons

New Zealand might be a paradise for outdoor enthusiasts, but its housing market sure isn’t. House prices in Auckland, where incomes are not rising at the same pace, are among the highest in the world relative to income, meaning many Kiwis are priced out of the market altogether. And if you are able to buy a house, upkeep costs and inflexible rules for renovations can tie up your money for years.

Switzerland

While Switzerland is known for its neutrality, when it comes to housing costs, neutrality is the last thing Switzerland is known for. Fewer than 40 percent of the people can afford to own a home here. It’s not just the high property prices. In addition, Swiss homeowners must pay taxes on property ownership and on imputed rent, a tax on the potential rental income of the property, even if it’s used as your primary residence.

Hong Kong

Astonishingly, property prices in Hong Kong are infamous. Millions of dollars can get you a tiny apartment, a shoebox size one. It may take the average professional 20 years of earnings to afford a 650-square-foot apartment here. Then when you add in high maintenance fees and stamp duties, owning a home is no longer an asset, but a burden.

Canada

Cities Where Life Is Better Than Anywhere Else — Image Credit: Chris1007/Pixabay

It’s no secret that Canada’s housing market is a rollercoaster ride, and not in a fun way. Toronto and Vancouver are among North America’s least affordable cities. The average price of a home exceeded CAD 700,000 in 2023. For many, the dream of buying a home in Canada requires years of saving for a down payment, only to scratch out any remaining money on maintenance, taxes, insurance.

Japan

Japan’s rural areas offer cheaper options, but in Tokyo, it’s a different story. The high land prices, paired with short property lifespans (homes are deemed outdated after just 30 years) mean buying a home is a pricey endeavor. If you add earthquake insurance and regular seismic proofing upgrades, you’ll be out a lot of money just to be safe.

South Korea

While South Korea’s rapid development has been accompanied by skyrocketing housing prices — especially in Seoul. Property ownership has been even harder for many thanks to the “jeonse” system, where tenants pay a lump sum deposit instead of monthly rent. And for those that actually buy, heavy property taxes and maintenance costs add to the financial burden.

Singapore

Though Singapore is small, its housing costs are big. Private property is unaffordable, even as the government still subsidizes for first time buyers. High land cost coupled with stamp duty and legal processes fees, make homeownership huge financial commitment.

Norway

Steep housing costs are part of the deal when it comes to Norway’s stunning landscapes. Over the past decade, property prices in Oslo, in particular, have risen dramatically. Buying a house in Norway can leave your savings frozen when you add the cost of heating during frigid winters.

Disclaimer: This list is solely the author’s opinion based on research and publicly available information.