This document outlines 6 hidden costs of home ownership: 1. Property tax increases as home values rise over time. 2. Utilities like garbage, gas, and water, which are easy to forget about when renting but must be paid by homeowners. 3. Unexpected repairs, which inspections aim to minimize but warranties can help cover.

1. 6 Hidden Costs of Home Ownership
and How to Handle Them

2. They say humans are born with only two fears:
the fear of falling and the fear of loud noises.
But as we get older, we learn to be afraid of lots
of other things, from snakes to radio show hosts

3. 1. Property tax increases. Property taxes are
based on your home’s value, so as the value of
your home rises, your property taxes will likely
also go up over time.

4. 2. Utilities. Garbage, gas, water - these all cost
money, something that’s easy to forget when your
landlord is covering them. But when you own a
home, you also own these bills. During the buying
process, it can be very
difficult to predict
exactly how much
these bills will run.
Your best bet is to ask
the seller if they will kindly
provide you with copies or
at least the amounts of their
recent utility bills, so that you
can have some sort of basis in
reality for your own budget and
spending plan.

5. 3.Unexpected repairs. Obviously, the reason we
get disclosures and inspections and such is to
minimize the likelihood of buying a lemon of a
home - and minimize the spectre of unexpected
repair costs. Your first line of defense at
managing these costs is the one-two punch: (1)
reading inspection reports and getting repair
bids for any issues that arise therein, and (2)
obtaining a home warranty to cover things that
arise later on.

6. 4. Condo fees increases. If you choose to buy a
Condominium, you’ll be given a number of disclosures
about what the Condo fees are, so the dues
themselves should be no
surprise. What can come as
a surprise, though, is the
fact that dues can go up
over time - sometimes in
relatively shorter order. I’d
encourage you not to skim lightly over what may seem
like the least important of the condo documents you’ll
receive: the newsletters and board meeting
minutes. You’ll find discussions of proposed Condo dues
increases far in advance of them being enacted, as well as
discussions about major building or complex repairs and
upgrades that need to happen and how they will be paid
for.

7. 5. Special assessments. There are two types of
special assessments for homeowners. The first are
assessments imposed by the City, on top of your
property taxes, to pay for things like street
lighting, parks, first responder agencies and to help
the schools out - these are often imposed after a
city -wide vote, which helps you predict for them. If
you’re planning to buy a home, often the seller’s tax
bill - which you can get from them or even, in most
areas, on the city website - will list the existing
special assessments separately from the property
taxes, so you can know how to budget for them.

8. 6. Basic maintenance. Being aggressive about
maintaining your home on an ongoing basis
allows you to avoid bigger, scary repair bills later
on - but it does cost.

9. Have you ever had a surprise cost burst your
home ownership bubble? What was it, and
what advice would you give for avoiding hidden
costs to new home owners?

10. Randy Bett
Investment Realtor/Author/Investor
Real Estate Professionals Inc.
Better Group Real Estate
202-5403 Crowchild Trail NW
Calgary, AB T3B 4Z1
Phone:403-774-7464 Ext:1
Fax:403-208-0082
Toll Free fax:888-711-6801

11. Randy Bett
www.BetterGroupRealEstate.ca