Upgrade support charges were introduced in the late 70s to help cover the extra costs of furnishing homes and businesses. They vary and are applied to different aspects of furnishing.
Upgrade support charges are typically applied to home sales, but they can be applied to home purchases as well. This can be confusing, because the charges are not applied at the same rate for both types of purchases. One of the most common misconceptions about upgrade charges is that they are applied to the purchase price, not the actual cost of a new room. They are not, but they are applied to the price of the new, much larger room.
This is a little misleading. If you have a new kitchen or bathroom, you don’t get a new room for FREE. You still have to pay for it, of course, but the charge is applied to the price of the new room. For example, your new kitchen might cost $50,000, you add $50k in upgrade support charges, and you get a new home for $20,000.
It’s not really about the price of new room, but it is important to note that the upgrade charges are for a room that is built that way. If you’ve got a new kitchen, there’s room for 10,000. If you don’t have a new kitchen, there are other rooms for 50,000.
If you want to get rid of the upgrade, there are various other options available, but the reason is that the upgrade doesn’t apply to your new house. These are the only alternatives.
A lot of people think upgrade costs are ridiculous. I agree, but the reason is that the charge for a house that is build that way is set by the county, so the upgrade charges will be far more affordable if you build your own house. To really see how much the upgrade charges are, take a look at your tax records.
That’s right, you can look at your tax records to see how much your taxes have gone up because of the upgrade. It’s a good idea to hire an accountant and get his or her opinion of how much the upgrade would cost.
Of course, we’re not talking about upgrades made on the fly, we’re talking about the actual costs. The reason for the extra charges is because the county can only approve upgrades built in certain areas. If a house is built in a certain area, the county can’t just approve the cost of an upgrade that isn’t built in that area. So the county can charge you an extra fee if you want to build a house in the wrong area.
If a house is built in the wrong area (and that house is not on the zoning map), the county will charge an extra fee. But they do this only if they deem that house to be a hazard, or if they deem the house to be blocking traffic.