Regular Upkeep

Owning a home is a little bit like acting as general contractor on a never-ending renovation project.

Whether you hire a professional or go the DIY route, you are expected to

mow the lawn;
shovel the driveway, balcony, and sometimes even the roof;
clear out the gutters;
keep an eye on the roof;
replace the air conditioner’s filters;
repaint;
etc.

Some jobs are minor, quick, and almost fun to do when the sun is shining. Others, such as replacing a roof or repairing a water leak, can prove very expensive.

On average, experts recommend setting aside between 1% and 3% of the house’s value each year to cover maintenance costs.

Home Insurance: Annoying but Necessary

Homeowners typically pay more for home insurance than renters for tenant insurance. Furthermore, having tenant insurance isn’t compulsory while the lending financial institution often requires proof of home insurance before granting a mortgage.

It’s not the most thrilling thing to spend money on, but you’ll be glad to have this safety net to fall back on the day a burst pipe decides to turn your basement into an indoor swimming pool!

Insurance premiums vary depending on the region, the age of the house, the quality of the materials, whether or not there’s a wood-burning stove, etc., but they usually come to a few hundred dollars per year.

Future Renovations: Because no House Is Eternal

As a tenant, if the toilet breaks, you call someone: they arrive and fix it. As a homeowner, you have to rely on your own wallet to come to the rescue.

Even if you meticulously maintain your property, certain types of renovations become unavoidable over time, such as reshingling the roof, replacing the windows, or updating a bathroom that dates back to when beige telephones were all the rage.

These projects aren’t cheap, but the good news is that they usually increase the property’s value. So, rather than being seen as an expense, they’re often viewed as an investment.

Energy Costs: Higher Than You Think

When you live in an apartment, the monthly rent may include the heating, electricity, and hot water. In a house, however, every extra degree you raise the thermostat in January will directly show up on your bill.

Factors that can significantly impact your power bill:

A larger home
Old insulation
An energy-intensive heating system
A constantly running air conditioner
You must also remember to include the cost of maintaining your appliances in your budget, such as cleaning the ventilation system or replacing a water heater.

Again: you should anticipate spending on average a few hundred dollars per year on servicing your appliances—and a few thousand if you need to replace a piece of equipment.

Municipal and School Taxes: Unavoidable

When you rent, taxes are invisible: they exist, but the landlord bears the cost. When you purchase a home, they suddenly become very visible indeed!

Municipal taxes vary according to region, property value, and services provided. School taxes tend to be lower, but they still increase your annual bill. Expect to pay between $2,500 and $5,000 each year.

How to Calculate the True Cost of Owning a Home

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