However, the majority of people think about the immediate cost of owning a home without considering the costs over time. Instead of getting caught up in closing costs and the price of the home take a look at what you’ll require to take care of the home you’ve purchased. There’s a good thing that the cost of periodic maintenance will usually be less when your home is still new. This is due to many components, such as the furnace or roofing, which are costly to repair, remain under warranty. But, remember the maintenance plan for your home will also be able to cover items aren’t included. It could be for new garage doors, concrete staining and replacement windows.
The Rule of Thumb for Budgeting for home Repairs
There’s no standard answer for”What should I budget for home repairs?’ There are a few general guidelines that can be an excellent start point to help by making more accurate calculations. The rule of 1% can be applied to determine much space you should allocate for repairs at your house. It’s fairly easy to determine. You must save around 1% of your house’s worth each year for maintenance and home repairs. Let’s say your home has the value of $300,000. If that’s the case, it is necessary to save each year $30,000 to fund house repairs. This is $2,500/month if you think about 12 months.
The square footage law states that for each square foot in your home the homeowner must set aside one dollar. So, if you own a 2,000-square-foot-home, this only means that you have to budget $2,000 per year or roughly $167 per month. Since large-sized homes are than just a cost to maintain, this set of rules is sensible. The homeowner will have to pay higher on repairs, if the home has more living space. Another rule of thumb which might be appealing to you is the 10% rule. The premise of this rule is to set aside 10 percent of the expenses you incur each month.