The amount of money you should save for home repairs is almost impossible to determine. Mostly, it’s because it depends on way too many factors. The general condition of your home, the age, the weather, even the location are just a part of things that influence repair costs. Not to mention the fluctuation in prices over the year. However, with a couple of hints, you can at least try to predict the expense and get yourself ready.
How much you should save for home repairs and how?
Generally, you would need a sort of financial plan. Since repairs are unpredictable you can’t be sure if you are saving enough. Most common things to include in your maintenance in repairs are:
- Taking care of your lawn
- Cleaning the pathways and approach
- Paying attention to paint
- Maintaining the pipes, vents, and filters
- Dealing with rust, leaks, mold, and wood decay
- Servicing the appliances
Since you need to start from somewhere, a home emergency fund would be a good start. You can only “hope for the best and prepare for the worst” with the approximate prediction. Also, don’t forget the renovation projects which are not part of the maintenance.
Why are your home repairs important in long term?
Taking care of your house is not easy at all. Especially if you are not used to it. This is one of the biggest concerns for people in transition from renting to owning. Generally speaking, delaying the repair is the most dangerous mistake you can make. Tempting or not, you should never try to save money by not maintaining your home. In the long term, it can lead to greater expenses and backfire to you. If you don’t deal with the termites or roof leaking problem, for example, the situation will only get worse.
The percentage method
Generally, one of the methods to determine the amount of money you need is a percentage of the value. Simply put, take the value of your home and calculate somewhere about 3%, more or less. This is the amount you will need to have in your emergency fond per year. If your home is $250,000 worth, then you will need approximately $7,500 yearly. This is not the exact number since the age, location, and weather can greatly influence the repair costs. Also, consider these numbers when buying a house. For example, when moving to Florida, you can easily hire a moving company like maryaliceandcarol.com to help you with the transition. However, moving costs are not only costs that await you when living in a house. Take into account the extreme weather that can happen, which can occasionally damage your house.
The square footage method
Large houses don’t necessarily have to have greater real estate market value. In fact, there are many places where you can buy quite a larger home for the same amount of money. This is where the square footage method is a better choice. For example, you take the number of square feet your property has and save a dollar or two per square yearly. For a 3,000 square ft. house, you will need about $3000 to $6,000 annually. Again, this is not the exact number since upkeep can depend on other factors as well.
Saving for the emergency fund is a part of being a homeowner. How much you should save for home repairs depends entirely on your assessment. Fortunately, one thing is sure and you will never go wrong if you never drop your guard and always prepare.