How to figure out your home maintenance budget.
The home maintenance budget should vary between 1 and 3% of the value of the property spent yearly to protect the value of one’s asset. How many people do this? Not many, but the bright ones do. The actual amount depends upon the age and type of construction of the property and previous maintenance done or not done.
Your home is a major investment and needs regular care just as one’s body does to stay in peak shape. By refusing to spend consistently on maintenance will decrease the value of the asset.
And if one finds oneself in a position where repairs have been unaddressed for years then this probably means that this property is too expensive for you. When you come to sell the un-done maintenance will be sadly reflected in the sale price. You may be best advised to fix the simple and easy and move to a less expensive address where your budget can afford to keep your property in tip top shape. Also be advised when buying a property to consider the ongoing maintenance costs just as you would the interest rate you be paying on your mortgage. A brick veneer home will require less maintenance than a timber frame home on an ongoing basis. A full brick house will be less expensive than a brick veneer as there are no soft plaster walls to suffer damage.
The longer timely maintenance is left undone the greater damage that is done to their structure of the home and the more the value of your house is undermined. A simple fix of a few thousand dollars having the timber windows painted will end up costing 10,000 as the windows will need replacing. The leaking downpipe which might cost the couple hundred dollars to fix now in the future could cost multiples of thousands to fix cracked walls due to sinking footings . We are just not talking about keeping the grass cut and the flowers watered but those items which have significant impact on the structural integrity of the building and the amenity of the residents.
Some of the items you will need to consider in the budget are roofing/flashings, guttering, water heaters, air-conditioners, foundation protection, trees, painting etc. The sum of money should be allocated to these items on a weekly basis so there is no sudden shock to your finances if something suddenly requires immediate attention.
A word of wisdom: always consider the cost of maintenance when evaluating the actual cost of buying a home. It is better to purchase a less expensive home and be able to afford the required ongoing maintenance than to buy a more expensive home and not be able to maintain it as a well maintained home will appreciate over time whereas an un-maintained home will depreciate.
Okay now so let’s get those home maintenance budgets in order! Laying off a few beers or donuts each week should probably nearly do it for you.