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Does it cost over $1K to maintain a house at GTA

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  • Feb 7th, 2018 4:44 pm
[OP]
Member
Jul 26, 2016
209 posts
76 upvotes

Does it cost over $1K to maintain a house at GTA

My co-worker has recently purchased a detached house in Brampton. Since then he got his real estate license and is driving UberEats in the evening and on weekends. He told me he had to because apart from his $2K+ mortgage per month the running cost of a house is at least $1K with property tax, utility, home insurance etc.

I was surprised it's that expensive! No wonder many people rent out their basement. I was very against buying condo with management fee, but guess there's pros and cons for other housing options. Does it cost that much to maintain a townhouse as well?
51 replies
Jr. Member
Aug 29, 2011
193 posts
148 upvotes
GTA
Sounds reasonable. I pay out about $800 a month for everything except repairs and maintenance. No mortgage. Repairs and maintenance can easily be $200 a month on an ongoing basis. They usually come irregularly in big amounts. Roof, furnace, AC, renovations are the big ones.
The Duke
Deal Expert
User avatar
Dec 12, 2009
20776 posts
8992 upvotes
Toronto
$1k per month is not enough to cover property taxes, utilities, and home insurance. Don't forget that from time to time, minor repairs here and there cost money. There is the need to consider a reserve fund for major repairs/replacements such as roof, furnace, hot water heater, AC, appliances on a 15-20 year cycle.
Deal Addict
Feb 25, 2007
2662 posts
456 upvotes
dunno Brampton property taxes, but in Markham a detached house property taxes, utilities, and home insurance $1K is not enough
Deal Fanatic
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Oct 16, 2008
8188 posts
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Maple
On a good month with no extra surprise maintenance. 1K is enough.
Property Tax + Property Insurance + Gas + Hydro

Extra money should be putting aside for other surprise expenses like roof repair, furnace, A/C, appliances, etc.
Member
Feb 3, 2012
298 posts
156 upvotes
T.O.
$1000 may be reasonable as Brampton has higher property tax.

I live in Toronto and my monthly cost is closer to $650. Here is the breakdown.

$390 Property tax
$80 Home insurance
$70 Gas
$70 Electricity
$40 Water and garbage pick up
Deal Expert
Mar 23, 2009
19604 posts
5682 upvotes
Toronto
$1000? Obviously, it depends on the house.

Lots of people in big Toronto houses would be overjoyed if they only had to spend $1000 per month on house expenses.
sputnik99112 wrote: $1000 may be reasonable as Brampton has higher property tax.

I live in Toronto and my monthly cost is closer to $650. Here is the breakdown.

$390 Property tax
$80 Home insurance
$70 Gas
$70 Electricity
$40 Water and garbage pick up
That assumes $0 for maintenance.

BTW, I just got a new furnace after my last one died suddenly. Cost over $4000 and it’s only 60000 BTU, which is a typical size for a smallish house.
Deal Fanatic
User avatar
Nov 19, 2004
8954 posts
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Cambridge, ON
sputnik99112 wrote: $1000 may be reasonable as Brampton has higher property tax.

I live in Toronto and my monthly cost is closer to $650. Here is the breakdown.

$390 Property tax
$80 Home insurance
$70 Gas
$70 Electricity
$40 Water and garbage pick up
Our monthly is around the same (higher property tax though), but don't forget actual maintenance. There are ongoing things like mowing, minor repairs, paint, etc. Then you have major items that may be less frequent but still needs to be factored in. We had to replace a door last year, expect windows in the next few years, our furnace soon as well. We did the roof a few years back. Average it out and soon the monthly cost grows.

Maybe not quite $1k but a reasonable rough estimate.
Deal Fanatic
Dec 5, 2009
5692 posts
3448 upvotes
Eric1010 wrote: My co-worker has recently purchased a detached house in Brampton. Since then he got his real estate license and is driving UberEats in the evening and on weekends. He told me he had to because apart from his $2K+ mortgage per month the running cost of a house is at least $1K with property tax, utility, home insurance etc.

I was surprised it's that expensive! No wonder many people rent out their basement. I was very against buying condo with management fee, but guess there's pros and cons for other housing options. Does it cost that much to maintain a townhouse as well?
You'd need to pay property tax on a condo as well. And comparing an 800 sq ft condo to a 2500+sq foot detached is apples and oranges.
The more home you own the more it's going to cost. Like everything in life.
Deal Guru
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Mar 23, 2008
12352 posts
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Edmonton
That $1000 isn’t “maintaining” the house. That money is just paying some of the associated bills. Maintenance is things like repair and replacement of things that get worn and broken, like gutters and furnaces and appliances...

C
Jr. Member
Mar 17, 2017
108 posts
43 upvotes
Here in Brampton, this is what I pay for my 2900 sq.ft. detached house
Mortgage ????
Property tax $540
Home insurance $90
Heating $97
Rental water heater $49
Hydro $100
Peel Water $80
Maintenance ????
Deal Fanatic
Sep 16, 2004
9612 posts
1861 upvotes
Toronto
You gotta pay to play.
It's all worth it to most who can afford it though, as it satisfies their egos and they keep p with the Joneses.
Everyone wants the best for their families, some people hang their hats higher than they can reach, but at the end of the day, they can say, look what I have.
Deal Expert
Mar 23, 2009
19604 posts
5682 upvotes
Toronto
Gk205191 wrote: Here in Brampton, this is what I pay for my 2900 sq.ft. detached house
Mortgage ????
Property tax $540
Home insurance $90
Heating $97
Rental water heater $49
Hydro $100
Peel Water $80
Maintenance ????
Basically $1000 a month NOT including mortgage or maintenance for your place. The 1% rule of thumb suggests that on average you may need 1% of your house value per year for maintenance. I don't know how much your house is worse, so I'll provide an arbitrary example: Using the rule of thumb for a $900000 house, you should have about $9000 per year for maintenance. That works out to $750 per month. Let's say that's too high because house price increases these days in the GTA may have outpaced increases in maintenance costs. So even if it were "just" $500 per month for maintenance for a $900000 house, that $500 per month or $6000 per year is something a lot of people here are not factoring in.

Note that these are an average, not the expected expenses every year. For example, if you need a new furnace, that might be $4000. If you need a new roof, that might be $5000. A power vented hot water tank with installation and tax might set you back as much as $1500. If you want to paint, that may be a few thousand $. This is on top of yard expenses and stuff like that.

If you are in a condo, you are forced to pay for this every year through your condo fees, along with a bit more for a reserve fund. For a house, you can get away with not paying for part of this for a long time, until you get into an emergency and all of a sudden you have to drop $10000 or whatever, because you have to replace your roof and furnace in the same year due to bad luck.
Jr. Member
Mar 17, 2017
108 posts
43 upvotes
EugW wrote: Basically $1000 a month NOT including mortgage or maintenance for your place. The 1% rule of thumb suggests that on average you may need 1% of your house value per year for maintenance. I don't know how much your house is worse, so I'll provide an arbitrary example: Using the rule of thumb for a $900000 house, you should have about $9000 per year for maintenance. That works out to $750 per month. Let's say that's too high because house price increases these days in the GTA may have outpaced increases in maintenance costs. So even if it were "just" $500 per month for maintenance for a $900000 house, that $500 per month or $6000 per year is something a lot of people here are not factoring in.

Note that these are an average, not the expected expenses every year. For example, if you need a new furnace, that might be $4000. If you need a new roof, that might be $5000. A power vented hot water tank with installation and tax might set you back as much as $1500. If you want to paint, that may be a few thousand $. This is on top of yard expenses and stuff like that.
Agree with you..
Also for a newer house, things like roof change, furnance, Windows, you can postpone for few years.
Painting house yourself saves a lot.
Deal Fanatic
User avatar
Jan 17, 2002
7454 posts
785 upvotes
Toronto
soupmaster666 wrote: Just bought and old house. Monthly:

Mortgage $1380
Prop tax $290
Home insurance $100
Electric+water+sewer $200 estimated
Gas - Union Gas thought it would average to $98 but I'm barely behind and I won't use any gas in the summer so I expect it to drop.
Water heater rental $13
Your hot water heater is electric I guess?
Newbie
Feb 29, 2016
35 posts
11 upvotes
On the slightly upper end in Toronto off Bayview in a 18 years old 4500 sf detached custom built home excluding finished basement, (water and garbage, gas and water tank rental, electricity, property tax and home insurance )runs about $20,000 for the whole year. Add home alarm, cable, internet and home phone =another $2400 per year. You probably don't even want to know what it cost to have done the roof, complete hvac and both garage doors in the past five years.
Deal Addict
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Oct 13, 2008
4964 posts
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Eric1010 wrote: My co-worker has recently purchased a detached house in Brampton. Since then he got his real estate license and is driving UberEats in the evening and on weekends. He told me he had to because apart from his $2K+ mortgage per month the running cost of a house is at least $1K with property tax, utility, home insurance etc.

I was surprised it's that expensive! No wonder many people rent out their basement. I was very against buying condo with management fee, but guess there's pros and cons for other housing options. Does it cost that much to maintain a townhouse as well?
My monthly expenses for our detached home in Oshawa:

Mortgage: $732.26 bi-weekly ... $1464.52 a month
Property Tax: $370.86 a month
Property Insurance: $79.65 a month

Hydro Electricity: $59.48 (last invoice - to Dec 2017)
Enbridge Gas: $181.31 (last invoice - to Jan 2018)
Water (BILLED Quarterly): $119.70 (last invoice - to Dec 2017) ... about $40 a month

So the basics would cost close to $2200 a month.

Then you throw in:

Home Security Monitoring System: $43.50 (taxes in) a month
Gigabit Unlimited Internet + TV Package: $113 (taxes in) a month

Auto Insurance (two cars ... 2015 Lancer + 2017 CX-3 ... full coverage): $168.50 a month

Now you are running to $2520 a month just to stay afloat.

Throw in gas for both cars and food ... you're looking at about $3200 a month just to stay alive.
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Deal Fanatic
User avatar
Dec 27, 2009
7427 posts
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Victoria, BC
My property tax is a little over $400 per month (if averaged out). Utilities are about $350 on average (cheaper than this most months, but we have a heated pool, so gas bills for those 5 months are high). House insurance is $116/month. Maintenance issues vary. I think your friend is underestimating if they are including money put aside for maintenance (we put lots of money aside each month for future maintenance/repairs/renos).
Deal Expert
Mar 23, 2009
19604 posts
5682 upvotes
Toronto
In a few years my property taxes will be nearly double what I was paying when I first moved in, in 2007.
Piranhaguy wrote: On the slightly upper end in Toronto off Bayview in a 18 years old 4500 sf detached custom built home excluding finished basement, (water and garbage, gas and water tank rental, electricity, property tax and home insurance )runs about $20,000 for the whole year. Add home alarm, cable, internet and home phone =another $2400 per year. You probably don't even want to know what it cost to have done the roof, complete hvac and both garage doors in the past five years.
Yep. Since our house was built in two phases, it has two HVAC systems. In the last 10 years we have replaced both HVAC systems, a hot water tank/heater, the roof, front and back wood stairs, and a fence on one side of the yard, among other things. We also had two huge trees removed at great expense. I had gotten an arborist to check out a sick ash tree on our property. He said there wasn't much they could do about the ash, which was succumbing to emerald ash borer, but while he was there he said that the two poplars near the house had to be removed since they were safety hazards. Those poplars are not recommended near houses (mine and my neighbour's) as they are a risk for toppling in high winds. The city agreed the poplars should come down but I got to bear the entire expense for this, which was substantial as they were both 60-feet tall.
Deal Addict
Aug 28, 2010
1259 posts
321 upvotes
Toronto
$1000 /m is reasonable. Property tax and utilities will easily run you $600/m. Dont forget insurance $100, some cities charge for garbage outside of your property tax, internet?, any rentals like HWT if applicable, repairs, etc.

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