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 $XX. That’s within our price range!”
Of course, the selling price plays the pivotal role in whether or not you can
afford a particular home. But, carrying costs should also be considered.
Carrying costs include any regular expenses related to the property. The
obvious ones are gas, hydro, water, garbage, and taxes. But there may be
others. For example, a home may also have a subscription-based alarm
system, high-speed internet, and hot water tank rental.
If there are common elements, such as a private street or some other
neighbourhood feature, there may be an annual maintenance fee.
It’s also smart to factor in predicted maintenance and repair costs, especially
when buying an older home. A property that hasn’t had its asphalt roof
shingles replaced in 20 years may be due soon.
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