Buying a house: expenses to expect after the welcome tax

Oct 15

4 min read

When buying a property, we naturally think of the down payment, the welcome tax, the notary fees, and the pre-purchase inspection. However, these costs represent only a portion of the true cost of a purchase. Future renovations to the house can easily exceed all of these expenses combined.

At GEQ – Building Consulting, we regularly meet buyers who discover, a few months after moving in, that a roof, windows, or a French drain need replacing. These expenses were often foreseeable; they simply hadn't been factored in when the purchase offer was made.

Buying diligently means knowing the age and condition of the main components of the house before signing, and including the work to be carried out in your budget and in your negotiation.

The purchase costs that everyone is familiar with

Even before taking possession of the house, the buyer must generally assume:

The welcome tax (property transfer tax), payable to the municipality
Notary fees and publication of the deed of sale
Pre-purchase inspection by a building professional
Municipal and school tax adjustments
Home insurance and, if applicable, mortgage loan insurance
Moving house and making the first purchases for the home

These amounts are known in advance and easy to budget. It's the subsequent expenses that create unpleasant surprises.

The expenses we forget: the life cycle of the house

A house ages in large cycles. According to our experience as building experts, every 25 years represents an important reinvestment milestone , because several components reach the end of their life at roughly the same time.

In other words, the age of the house you are buying already indicates what expenses you are likely to expect in the first few years.

You are buying a house that is approximately 25 years old

At this age, several components reach the end of their initial lifespan:

Roofing : an asphalt shingle generally lasts 15 to 25 years in Quebec.
Windows and patio doors : foggy thermos and leaks often appear after 25 to 35 years.
Exterior doors, caulking, and gutters.
The exterior cladding, balconies, galleries and exterior staircases.
The heating system : a heat pump lasts on average 12 to 20 years.
The air exchanger , the water heater and the sump pump.
The septic tank and the drain field , for properties not connected to the sewer system.
The kitchen and bathroom , whose wear and tear are becoming visible, not to mention the waterproofing membrane behind the shower ceramics.
Attic insulation , often compacted and insufficient.

You are buying a house that is 50 years old or more

After 50 years, the issues involve more costly, often hidden, but crucial elements for the value and security of the property:

The French drain , which can become clogged as early as 25 to 40 years depending on the soil, and which frequently needs to be replaced at 50 years.
Waterproofing the foundation and repairing cracks.
Plumbing : galvanized steel or polybutylene pipes, cast iron drains and main drain under the slab.
Electricity : fuse panel, aluminum wiring, no grounding.
The roof , often in its second or third replacement, sometimes with the repair of the decking.
Wall insulation and vapor barriers are often absent or insufficient.
The chimney and brick facing : repointing, crown, rusty lintels.
The structure : joists, central beam and columns.
Hazardous materials , such as asbestos, vermiculite, lead paint or radon.

Buy with due diligence: what the law expects of you

In Quebec, the buyer is required to act prudently and diligently . In practical terms, a defect that a reasonable buyer could have discovered during a careful examination of the house is considered apparent, and it becomes much more difficult to obtain redress after the sale.

A roof nearing the end of its lifespan, fogged-up windows, or an old fuse box are not hidden defects. They are foreseeable expenses that the buyer should anticipate. Hence the importance of carrying out due diligence before committing to a purchase.

Our tips for making an informed purchase

Have a pre-purchase inspection done by a building expert, and read the report carefully, especially the sections on the remaining lifespan of the components.
Ask about the age of major components : roof, windows, heating, water heater, French drain. Request invoices for renovations where available.
Read the seller's statement and ask questions about anything that seems incomplete.
Estimate the work to be carried out over the next 5 to 10 years and include it in your budget.
Use this information in your negotiation : a roof that needs replacing in the short term may justify a price adjustment.
Set aside an annual reserve for maintenance. Several specialists recommend setting aside 1% to 3% of the property's value each year.
In a condominium , consult the reserve fund study of the syndicate, mandatory under Law 16, to find out if major work is well financed or if special contributions are to be feared.

A building expert at your side

At GEQ – Building Consulting , our building experts assist buyers throughout Quebec. Our role goes beyond simply identifying defects: we help you understand the true cost of the house in the years to come, so you can buy with confidence.