House Effects: Future costs of maintaining, repairing and renovating your house

You worked hard to save for a downpayment on a house and you passed the stress test for mortgage approval.  You added your mortgage payment amounts, insurance cost and property tax to your personal living budget and mathematically you can make ends meet for the foreseeable future.  But did you factor in the costs to maintain, repair, replace and renovate over the years?  

By the time you reach 80 you will have spent $245,000 on your maintenance, repair and replacement items.

We looked at these factors and calculated the amounts an owner would have to spend every five years until they reach 80 years of age.   We have provided an example for a newly built house and a previously owned resale house. 

A 30 year old consumer has just purchased a newly built 1600 square foot house. Their future cost of maintaining, making repairs, and replacing items in the house up until they reach 80 years of age is $245,000.  

Related: 2021 Household Cash Flow

Wait!  There's more.  That same home owner could spend up to $368,000 on renovations over the same period.  That's a total of $613,000 over the next 50 years for upkeep and renovations.

Your actual costs will vary based on the size and type of house you live in, weather conditions, and the performance of the material or products used in building your house.  Use the chart below to see what your costs could potentially be.  Find your age range and read up for the maintenance, replacement and capital repair costs and read down for updating renovation costs.  The amounts shown are in five year increments.  

House description:  Built in 2020, 1600 square feet, 2 storey, 3 bedroom, 2 bathroom, 1 garage door, 30 x 30 yard, 1 gas fireplace, hot water tank rental, brand new kitchen and laundry appliances.

Download chart image here

Maintenance, replacement and capital repair assumptions:  Owner remains in the same house until age 80.  Annual Inflation of 1.5%.  Mid-range price of consumer goods.  Does not factor in rebates or subsidies.  Hot water tank rented.  Annual maintenance service (interior/exterior); every 10 years replacement of refrigerator, dishwasher, washing machine, dryer and alert systems; every 15 years replacement of stove/oven, faucets, toilets, landscape overgrowth maintenance and repairs; every 20 years replacement of wood fence (shared cost with 3 neighbours), some furniture, bathroom fans, furnace and air conditioner purchase; every 25 years replacement of roof, windows, additional attic insulation, security system: every 30 years replacement of window coverings, gas fireplace, garage door, asphalt driveway; every 40 years electrical and plumbing modifications; every 50 years replacement of storage solutions; 75 year gut renovation of electrical, plumbing, ducts, insulation, flooring, structure fixes, drywall (construction only); 80 year tree and root removal.  Does not include contracted lawn maintenance or snow removal services; house cleaning service, insurance, utilities, monitoring fees.  Water seepage into the basement will require water proofing the exterior of the foundation or installing a sump pump with weeping tile on the interior of the foundation. Budget $5,000 to $20,000 if you have this situation.

Updating renovations assumptions:  You remain in the same house until age 80.  Annual Inflation of 1.5%.  Mid-range price of consumer goods.  Does not factor in rebates or subsidies.  Within first 5 years, fence, deck, painting, starter landscaping; every 10 years, painting; every 15 years, additional landscaping; every 20 years, kitchen, ensuite; every 25 years, bathroom, laundry room, powder room, deck replacement; every 30 years, flooring re-finishing, doors, baseboards.

A basement renovation cost has been left out of this example.

 

Here's another example.  A 40 year old home owner has decided to sell their house and purchase a 1600 square foot resale house (previously owned) that was built in 2000.  They will pay about $200,000 for maintenance, replacement and capital repair costs over the next 40 years.

Using the chart below, find the year that your house was built and read across for the costs every five years.  We have assumed that the previous owners have kept up with the maintenance schedule and repaired or replaced aged systems of the house and you purchased the house with the existing appliances.  The amounts are shown in five year increments.  

House description:  Built in 2000, 1600 square feet, 2 storey, 3 bedroom, 2 bathroom, 1 garage door, 30 x 30 yard, 1 gas fireplace, hot water tank rental.

Download chart image here

Renovation updating costs have not been projected since some of these projects may have already been done by the previous owner or you have decided what and when to make these improvements once you move in.  

Maintenance, replacement and capital repair assumptions:  Owner remains in the same house until age 80.  Annual Inflation of 1.5%.  Mid-range price of consumer goods.  Does not factor in rebates or subsidies.  Hot water tank rented.  Annual maintenance service (interior/exterior); every 10 years replacement of refrigerator, dishwasher, washing machine, dryer and alert systems; every 15 years replacement of stove/oven, faucets, toilets, landscape overgrowth maintenance, retaining wall and walkway repairs; every 20 years, replacement of wood fence (shared cost with 3 neighbours), some furniture, bathroom fans, furnace and air conditioner purchase; every 25 years replacement of roof, windows, additional attic insulation, security system: every 30 years replacement of window coverings, gas fireplace, garage door, asphalt driveway; 40 year electrical and plumbing modifications; every 50 years replacement of storage solutions; 75 year gut renovation of electrical, plumbing, ducts, insulation, flooring, structure fixes, drywall (construction only); 80 year tree and root removal.  Does not include contracted lawn maintenance or snow removal services; house cleaning service, insurance, utilities, monitoring fees.  Water seepage into the basement will require water proofing the exterior of the foundation or installing a sump pump with weeping tile on the interior of the foundation. Budget $5,000 to $20,000 if you have this situation.

 

Run your own numbers.  We have put together a workbook for you to enter data based on your housing situation.  Download Numbers or Excel formats. 

To help you with your ability to afford your house, you should build in other living and lifestyle expenses into your household cash flow budget.  Statistics Canada has published average expenditures per household.  Don't forget to include the costs of owning a pet.  

Social Connections:

Ontario House Effects Group, House Effects Facebook, @HouseEffects_ON,  @StatCan_eng, @ENERGYSTAR_CAN, @OSFICanada, @ONConsumer, @SaveonEnergyOnt

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Disclaimer:  The information is intended to help you pre-plan buy, maintain or renovate your house.  It is not intended to provide financial advice.  Dollar amounts or percentages for taxes, fees, refunds, rebates, subsidies, grants, loans, maintenance or renovations costs, interest rates, thresholds, and inflation rates could change at anytime making the information outdated.  The calculation results may not represent the actual costs you incur.