In many cases, homeownership may mean more than just paying the mortgage and the taxes. Some homes may need repair work before you move in, or even in a new home, everything won’t stay in good shape forever. In “Home Repairs You Should Think about Saving up For”we see that homes need painting every 5-8 years, HVAC systems last 10+ years, modern water heaters may only last 8 years, while your roof may last 20-30 years.
But eventually, you will need to do home repairs. So how can you keep your pocketbook balanced when it comes to these repairs? The key is to plan for the breakdowns and for replacements.
How much should you budget for home maintenance? Home repair experts say you should set aside 1% of the home’s purchase price for replacement costs and repairs. But this rule of thumb may not always be sufficient. There are factors such as the home’s age, condition, and location, which also determine the amount of money you spend on maintenance. Here are a few tips you can use to create a home maintenance budget. Try these tips for creating a home maintenance budget.
Save
Set aside that 1% to 3% of the value of the home for home repair needs. Place this in a separate bank account. For example, if your home costs $300,000, set aside $3000 to $4,000 for basic repairs per year. If you are a savvy homeowner you´ll do this from the very moment you purchase the home, so you won’t ever have to worry about where to get the money for home repair work.
Don’t Procrastinate
Home problems don’t just go away… they get worse. And the worse they get the more they cost. So fix the problem as quickly as possible and it will save you lots of money in the long run.
Prioritize Projects
If you already have a few repairs in mind, prioritize them and do the most urgent maintenance repairs that fit within your budget. Start with the projects that may affect the structure, the plumbing, or other critical elements of the home. Afterward, you can plan for home projects like bathroom or kitchen redecorating.
For example, if you need something like concrete work on the foundation, but you also want to redecorate the living room, you want to focus on the critical needs first. In this case, calling in a concrete services provider or foundation specialist, because it will be the repair that improves the value of your home and prevents the need for further repair work.
Save Energy
Minimize your utility bills by using energy-efficient appliances and light fixtures. Make any necessary repairs or replacements to keep your home working efficiently.
https://youtu.be/weTsUYj0FXI?t=74
Do Some Repair Work Yourself
Depending on your skills, consider doing some of the work yourself. If you aren’t very handy, sign up for courses or watch a few YouTube videos before starting.
Use Credit Carefully
If you have no other option and the repair work is urgent, consider using credit. Otherwise, save the money over a few months and then call in the repair person to get the job done.
It is possible to keep your pocketbook balanced, providing you take the time to save money for the repairs. It always works best to put this money away in another bank account to not access it for anything else.
You might also like:
