Consider the cost of maintenance when buying a home
The cost of maintenance is often overlooked when buyers plan their real estate purchase, but is a major expense that should be considered in the decision.
The process of purchasing a first home involves a lot of budgeting, and it is easy to forget to factor in maintenance costs. The estimated annual cost of maintenance on a property can be between one and three per cent of the property value, making it a significant factor when budgeting. Many first time buyers may believe they will be able to perform any required repairs independently. However, depending on skill level, a professional may be required, especially for repairs that involve plumbing or electricity.
Creating an emergency fund to cushion the impact of these expenses is something every homeowner should consider, however it is also suggested that extra cash flow can be better used to put towards the mortgage. This article suggests that regular maintenance should be manageable when budgeted into everyday expenses, of course every financial situation and home are different.
To read the full article from the Ottawa Citizen, click here.