Home ownership is one of the biggest investment decisions Canadians will make in our lifetimes. From the cozy starter family home to the executive detached mansions, your house is an investment in your future and protecting the value of that investment has significant advantages in the long term.
The answer to "how much to spend?" on annual upkeep costs depends entirely on your preference. Maybe you'll like a basic, no-frills plan with lawn mowing and bi-weekly garden cleanups or maybe you want someone to put in the extra hours to make those gardens pop. When it comes to being creative, there are plenty of options to choose from!
We've spent the better part of the past 6 years putting together data from trusted Government sources to make an easy to use guide on budgeting. Here's what you need to do -
Step 1 - Find out what your home is currently valued at. This can be achieved by either calling your realtor, or looking online at houses for sale in your neighborhood.
Step 2 - Multiply that figure by 0.35%
For example, if your property is worth $1M, then the annual maintenance budget should be $1,000,000 * 0.35% = $3,500.
This is a general rule of thumb and the percentage can vary from 0.15% to 0.45% of the property value depending on the size of the gardens & lawns etc. Another way to look at it is through a percentage of household income. So the 2 step process is -
Step 1 - Estimate the monthly household income
Step 2 - Multiply that number by 5%
For example, if household income is $5,000 per month, then your monthly maintenance budget should be $5,000 * 5% = $250 per month.
By doing these simple calculations, you can get a good idea on what your maintenance budget should be and work with that accordingly. Resources -
