Budgeting for Home Maintenance Expenses
Determining the right budget for home maintenance expenses requires careful consideration of several key factors.
Age of the Home
The first thing to consider is the age and condition of your home. Older homes often demand higher maintenance costs, while newer ones might require less frequent repairs.
Size of the Property
Next, consider the size of your property. Larger homes typically come with increased maintenance needs, from roofing and HVAC systems to landscaping. Larger pieces of land come with other things to consider like falling trees, fence repairs, driveway upkeep and more. The climate in your area also plays a role in home maintenance. Harsh weather conditions can accelerate wear and tear, necessitating more frequent upkeep.
Set Money Aside for Regular Maintenance
Regular maintenance tasks like painting, cleaning gutters, and servicing appliances should also be factored in to your savings budget. Setting aside around 1-3% of your home’s value annually for regular maintenance is a common guideline.
Set Money Aside for Unexpected Repairs
It’s also wise to establish an emergency fund to cover unexpected repairs, such as a leaking roof or a malfunctioning furnace. Prioritize major systems like plumbing, electrical, and HVAC, as neglecting these could lead to more expensive issues down the line.
Account for Local Labor Cost Variation
Remember that local labor and material costs can vary, affecting your budget. Consulting with contractors or professionals can provide insights into the average costs in your area. But just like everything else these days, costs for repairs will likely increase each year.
By accounting for these factors when trying to foresee home maintenance expenses, you can be better prepared to create a budget and savings plan that safeguards your home’s value and your financial well-being.
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Casey Smith
President, Wiser Wealth Management
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