The Role of Carrying Costs when Buying a New Home
When searching for a new home, many buyers will focus only on the list price and what they may need to offer to get the property. For example, a buyer might think, “We can get this house for $XXX.00, and That’s within our price range!”
Of course, the selling price plays and important role in whether or not you can afford a specific property. However, carrying costs also need to be considered.
The carrying costs include all the regular expenses related to the property. The ones which stick out are gas, hydro, water, condo fees (if applicable), and taxes. However there may be other monthly expenses to consider. For example, a home may also have a rental contract for an alarm system, water softener, and/or a hot water tank. And in some rare cases the furnace and AC may be rentals as well.
If there are common elements, such as a private street or some other neighbourhood feature, there may be an additional maintenance fee.
It’s also a good idea to factor in future maintenance and repair costs, especially when buying an older home. A property which has 20 year old asphalt roof shingles may need to be replaced in the near future.
So, when shopping for a new home, consider what the carrying costs will be. That will help you make a more informed decision.
That being said, having to pay a little more in monthly costs may be worth it if you love the place and it (as well as the neighbourhood) has everything you want.
If you’re looking for a home and would like a professional to work in your best interests and assist you with your search, don’t hesitate to reach out today. Thank you.
Happy House Hunting!
Ryan Taylor, Sales Representative
Royal Heritage Realty Ltd., Brokerage