1. The Costs of Home Maintenance Section 5.3

2. Maintenance What might you need to fix in your house? –Roof –Replace Windows –Landscaping –Siding –Paving –Painting Inside –Remodel rooms in the house

3. Maintenance A guideline is to put away 2% of the purchase price per year for maintenance and repairs

4. Maintenance So how much is that? –$145,000 –$211,000 –$235,000 X 0.02 = $2900 X0.02 = $4220 X0.02 = $4700

5. Let’s Think: How would the maintenance and repairs differ between a new home and a resale home? –A new home shouldn’t need any repairs, whereas a resale home usually needs some kind of maintenance

6. Condo’s Remember they have to pay a condo fee per month based on the size of the unit It pays for: –Some of the work that homeowners would do themselves –Some of the utilities that may be included or cheaper because of the condo –Some extras homeowners don’t have like a pool, gym or security

7. Let’s Think: How do the costs of maintaining a condo differ from homeowners? –It will end up being cheaper in the long run but you have to pay this fee every month. Homeowners only pay when they need to fix something.

8. Property Tax Paid to the town for things like garbage collection and snow removal Every town has a different rate, but it is a percent (so we should know how to calculate it)

9. Property Tax Lets try some: 1.0002% of $144,000 1.056% of $258,000 0.010002 x 144000 = $1440.29 0.01056 x 258000 =$2724.48

10. Your Turn Page 94 –#5,7,8,9 Page 96-97: Real Estate Agent Career Focus