Without having a accurate picture of what it costs to maintain your present home you will have a hard time planning for your next move. Many people will procrastinate about making a decision by using these convenient excuses.
• I don’t want to move anywhere, my house is paid for, we live here for next to nothing!
• I wouldn’t live in a condo those monthly maintenance fees are ridicules!
• Retirement residences are so expensive!
Many older homeowners when asked how much it costs to run their present home do the quick mental math and come up with a rough figure.
Unfortunately the quick math doesn’t tell the whole story, many people forget about expenses that are brought on by depreciation that can greatly impact the cost of maintaining a home.
There are three types of depreciation that impact your home
1. Physical depreciation occurs due to corrosion, and the normal wear and tear that results from use.
2. Reversible depreciation covers items that homeowners periodically replaces or repairs for instance roof shingles, windows, driveways etc.
3. Functional depreciation (sometimes called obsolescence) occurs when older houses become relatively less desirable because they do not incorporate the most recent styles and trend in areas such as kitchens, bathrooms and even ceiling heights.
Once depreciation expenses are added in the yearly housing expenses can change greatly