There comes a time in every adult's life where they start to wonder if they could be making better use of their money. Most people zero in on renting and think: could I do it? Could I afford to buy my own Junction real estate and build up equity with my monthly payments instead of just throwing them away? But owning a home is about more than just monthly mortgage payments. If you're thinking it might be time to go from renting to buying, here's a run down of your monthly expenses.
Mortgage
Your Toronto mortgage payment will be your biggest expense, likely equal to or greater than whatever you're paying in rent, plus in order to get a mortgage you'll have to have a down payment saved up. If you have a fixed rate mortgage, your payments will be steady like rent would be, but if you have a variable rate mortgage, the actual amount of your monthly payments will fluctuate, sometimes significantly.
Utilities
Most landlords pay for the water, heat, and electricity in an apartment. When you're on your own, these bills are your responsibility. The cost will depend on how much you use and the type of heating system. A home heated by oil costs about $500 to heat every few months. You can cut down on these costs by living a greener lifestyle. Additionally you'll have bills for your telephone, internet, and cable television if you choose to sign up for those, which together cost about $150 at the low end.
Maintenance
For people who live in downtown Toronto condos, there will be a monthly condo fee to cover maintenance of the common areas set at somewhere between $50 and $200 depending on the complex. Repairs for your own unit come out of your pocket. House owners have to pay all maintenance out of pocket, so it's a good idea to set a few dollars aside each month in an emergency fund case your home needs unexpected repairs.
Insurance
Worrying about what could happen to your house could send you in for Guelph anxiety treatment unless you have insurance. Homeowner's insurance covers the replacement cost of the home and its contents (insurance cost is determined by home value) and you can also get mortgage insurance, which will protect you if you start to miss payments on your mortgage.
Taxes
And finally, there are your property taxes. In addition to your income tax, you'll also have to pay the city for services like the roads your Toronto taxi cab drives on and the sewer pipes that take away your home's waste water. Cost is dependant on your property value and payments can be made monthly, quarterly, or all at once during tax season.
|