10 hidden Costs of the Property

With the return of spring, many will enjoy the flowering of signs "for sale" and the beautiful season of mortgage rates, to buy their first home or apartment. At a very first real estate acquisition, it's amazement. The buyer has often not taken into account the importance of "ancillary" costs that are as many cuts in the budget: insurance, rnmiscellaneous expenses, service providers to pay ... Owner candidates, here is what awaits you.

Expertise

Acquiring property is often the biggest financial investment of a lifetime. It is therefore normal to examine under a magnifying glass the inventory of fixtures or the market value of the property in question. To do this, you will need the services of a real estate expert. In exchange 300 or 400 USD, he will put his finger on the risks and possible weak points. You will be able to value this expense by using the results of the expertise as a negotiating argument, possibly to obtain a substantial reduction.

Notary fees

Before you receive the keys, you will have to fill out all the paperwork, intended in particular to protect the contracting parties, but especially to pay tax and notary fees in exchange for your title deed. You will first have to pay registration fees. They are calculated on the selling price and the charges. Their rate varies according to the region. Sometimes, you will not pay any registration fees on the first $15,000. This is called the abatement. The notary is the only person authorized to establish you officially as a new owner. The law requires the intervention of a public officer so that the sale is "opposable" to all. The notary is paid according to the work done.

Borrowing costs

If you have never made a loan, keep in mind that it will not be enough for you to repay the repayments and interest each month. Your budget must incorporate other factors. Try to respect this golden rule: your immediate cash must be greater than your immediate expenses and your recurring expenses must follow the same trend. You will have to pay registration and registration fees of 1% and 0.3% respectively of the amount of the loan. The financial institution with which you borrow may require certain additional charges.

Taxes on real estate income

Real estate is subject to taxation. You will have to pay a real estate tax, a regional property tax equivalent to a percentage of the cadastral income. The notion is a little abstract. The cadastral income is the normal average net income of your home at a given time, i.e. a theoretical income estimated on the basis of reference income (i.e. rental income from 1996). Its amount is thus fixed by the administration of the cadastre according to the rental value of your property compared to the rents of identical dwellings.

Insurance

Buying a home will expose you to new responsibilities. You will have to be able to answer for possible damages to your house but also to those of your neighbors. The home insurance covers a series of mandatory basic coverage but, for the rest, differs according to the area, the estimated value of the home and especially by insurers. So, check the "cost / coverage ratio".

Condominium

Owning is not limited to the acquisition of a beautiful four facades. Some will opt for an apartment and will therefore own part of a public good. This will result in new expenditures:

• share in the common areas and the land on which the building is built
• waste management
• lawn care
• or the use of a receptionist

Each owner must intervene in the costs benefiting all residents. Thus, the owner of a ground floor will participate financially in elevator expenses if its quotations are more important than the owner of the 10th floor.

Travel expenses

Once the sale is signed, the buyer must arrange his move. It will often require the services of professionals. The fees depend on the volume of furniture and the distance between the two dwellings. If you change your region, find out about the tax system, which is always likely to be less advantageous. Finally, keep in mind that if you move into a larger space, you may find that the kitchen table makes "pokey" in your new spacious dining room and that the desk is a little bare with the cabinet in kit. It will undoubtedly be necessary to think of equipping more. Hence new fees.

Energy

As an owner, you risk unpleasant surprises if you choose your energy supplier badly or too hastily. Still, in order to make a wise choice, you have to estimate the most precisely your annual consumption of water, gas and electricity.

Outside maintenance

You probably already dream of organizing barbecues in the garden ... Know that an owner is required to maintain his property including the outside. This means:

• raking leaves
• mowing hedges
• cleaning ditches
• salting the sidewalk in case of snow

You will need to equip yourself accordingly or call for outside help. This all has a cost.

Repairs

The maintenance and repair costs to be borne by the owner are significant expenses. To you to call the plumber in case of leak, the roofer during a detachment of tiles, the electrician during a short circuit etcetera.