What You Need to Know About Home Maintenance Costs
Home maintenance costs are an inevitable part of homeownership, and while it may seem overwhelming, being prepared makes it manageable. These costs can vary based on the size, age, and location of your home, but they all add up over time. As a rule of thumb, it’s recommended to set aside 1-3% of your home’s purchase price for yearly maintenance and repairs.
For example, if you purchased a home for $300,000, you should budget at least $3,000 annually for routine upkeep. This budget helps cover general maintenance but be sure to set aside extra for unexpected repairs.
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Key Home Maintenance Costs to Consider:
Rent, Mortgage Payments, Taxes and Insurance
These recurring expenses are a key part of homeownership. While your mortgage payment is typically fixed, things like taxes and insurance premiums may fluctuate as interest rates rise or as your home’s value increases. Staying on top of these costs is essential for managing your homeownership budget.
Utilities
Water, gas, and electricity are ongoing utilities that will vary month to month. Some utility companies offer budget billing, where they average your costs for the year and charge you the same amount each month. It’s worth checking with your utility providers to see if this option is available.
Repairs
While you can stay on top of regular maintenance, some repairs are inevitable. The size, age, and condition of your home will determine when you need to make repairs. While your DIY skills can save you money, it’s important to budget for any major repairs that may arise, such as plumbing or electrical work.
General Maintenance
There are things you should do to your home often to keep it in good working order. Things like changing the furnace filter monthly, or flushing out your water heater annually. Doing so can help you avoid costly repairs later. To know how often to do these tasks, grab your free copy of the Home Maintenance Checklist. This guide will help you stay on top of them to avoid costly repairs later.
How To Get Ahead Of Home Maintenance Costs
Create a Budget
Knowing what to expect is the first step in managing your home maintenance cost effectively. Start by listing out all of your monthly expenses, and then allocate a portion for home upkeep and emergency repairs. This proactive approach will allow you to stay ahead of costs, avoiding financial surprises later.
Shop Smart
Before starting any home project, do your research. Compare prices online and at local retailers for materials to ensure you’re getting the best deal. Being a savvy shopper can significantly lower your overall costs.
Do It Yourself
Taking on small repairs and maintenance tasks yourself is one of the best ways to reduce your home maintenance cost. From unclogging drains to fixing leaky faucets, there’s a wealth of online resources available to help you learn how to tackle DIY projects. Not sure where to start? Subscribe to The Daily DIY’s free newsletter for weekly home repair, maintenance, and renovation tips. Also, check out our blog on 10 Helpful Tools to Include in Your Starter Tool Kit to get equipped for success.
Set Up a Savings Account
Put your maintenance budget on autopilot by setting up a dedicated savings account for home repairs. By dividing your yearly maintenance budget by your paycheck frequency, you can automatically deposit that amount into your savings account. This ensures that when you need funds for maintenance or repairs, the money is already there.
Tax Deductions for Home Maintenance Costs?
Did you know some home maintenance and repair costs could be tax-deductible? Consult with your tax professional to find out what home improvement projects qualify. You can get started by reading our guide on What Home Improvement Projects Are Tax Deductible.
Conclusion
There’s no such thing as a maintenance-free home. As a homeowner, understanding and budgeting for home maintenance costs is essential to keeping your property in excellent condition. By planning ahead, staying organized, and learning how to tackle small projects on your own, you can manage these costs and enjoy a well-maintained home for years to come.
