The True Cost of Ownership

In this episode, Jessilyn and Brian Persson break down the often-overlooked expenses of property ownership that can make or break your investment success. From mortgage and closing costs to property taxes, insurance, and maintenance, they explain why budgeting beyond the purchase price is essential. They share real-life stories of costly surprises—like a $50,000 foundation repair—and highlight the importance of thorough inspections, realistic rental projections, and effective property management.The Perssons also discuss strategies for maximizing profitability, including setting rent based on market conditions, planning for vacancy costs, and accounting for property management fees—even if you self-manage. They emphasize that underestimating these expenses can lead to financial strain, but with proper planning, real estate can be a powerful wealth-building tool. Tune in to learn more about the common misconceptions about ownership and set yourself up for long-term success!Resources discussed in this episode:The 3 Mistakes that Keep High Achieving Couples from Building their Wealth, Freedom & Living a Life they Love—Contact Jessilyn and Brian Persson | Discover Life By Design: Website: DiscoverLifeByDesign.caInstagram: DiscoverLifeByDesignFacebook: Discover Life By DesignLinkedin: Discover Life By Design—TranscriptJessilyn Persson: [00:00:08] Welcome to the Life by Design podcast. We are your hosts Jessilyn and Brian Persson. Are you and your partner looking to align your financial goals and build wealth together? Have you ever wondered what might be stopping you from confidently investing in real estate or growing your wealth as a couple? Or why it feels so hard to get on the same page financially?Brian Persson: [00:00:27] That's exactly why we created this podcast and the 'Riches, Relationships, and Real Estate' program to help couples like you invest confidently and achieve both your financial and relationship goals. Curious to learn more? Visit discoverlifebydesign.ca to book your discovery call and build your customized wealth strategy plan with us. Let's create the life you deserve together.Jessilyn Persson: [00:00:49] Today's topic, we're going to be talking about underestimating the true cost of ownership. Many first-time investors focus solely on the purchase price only to be blindsided by a host of hidden expenses. So we're going to talk through some of what those expenses are so you can avoid these when you decide to buy your real estate.Brian Persson: [00:01:09] I can't count the number of times I've been in a conference and meeting people who are investing in their first or second property, and they are still missing things in the budget. We'll talk about what those things are, but effectively, their real estate portfolio is underperforming because it's not really calculated properly.Jessilyn Persson: [00:01:33] Yes, that is so true. We're going to roll right into the takeaways. The first one is that hidden costs add up. Know what to watch for. I know many of us are familiar, when we want to buy real estate, that we have to figure out what the mortgage is going to be, and to have that you need a down payment. Then there are usually closing costs, which we know of course are legal, but there are a lot of costs which we learned as we were buying, such as appraisal fees, if needed, inspection fees. We're fortunate not to have this