The holding costs to budget for beyond the purchase price
Service charges, maintenance, insurance and periodic refurbishment: a framework for estimating the true annual cost of owning a prime home.
Nadia Karim1 min read
The purchase price is only the beginning. Whether a home is for living in or letting, it pays to estimate its running costs before you buy.
Recurring costs
- Service charges for shared security, generators, lifts and common areas.
- Utilities, including the cost of running a generator during outages.
- Insurance for the building and contents.
- Municipal taxes, which vary by location.
Maintenance
Air conditioning, pumps, pools and generators all need regular servicing. Coastal homes need more frequent attention: salt air shortens the life of metalwork, paint and external fittings.
Periodic refurbishment
Plan for kitchens, bathrooms and decoration to be refreshed over the life of your ownership, and set money aside each year rather than facing a single large bill.
For homes you plan to let
Add management fees, furnishing replacement and periods when the home is empty. A realistic estimate of net income is far more useful than a headline rental figure.
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- ownership costs
- second homes
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