The Real Costs Of Maintaining Your Home

Think maintaining your home is cheap? Think again. Homeowners are often surprised by the amount of money they need to maintain their home. One of the headaches of home ownership is that your house will start to age. Even with a brand new home, there will be a need for ongoing repairs and maintenance. This is an essential part of home ownership that is very important. Let’s take a look at the real costs of maintaining your home, how to budget, and some ways to cut them.

Costs To Consider

The costs of home maintenance are inevitable. They can vary depending on the size and location of your home, but they are all very real. When purchasing a home, you should set aside 1-3% of the home’s sale price for maintenance and repairs. Then, you should set aside at least 1% of your home’s value each year.  As an example, if you buy a home for $300,000, you should expect to budget at least $3,000 per year for routine maintenance.  Keep in mind this amount is for routine home maintenance only.  Set aside extra funds for emergency repairs.

You may be wondering how much you should budget for annual home maintenance. Let’s look at the real costs of maintaining your home each year:

Rent, Mortgage Payments, Taxes and Insurance

These are ongoing expenses that you must pay to live in your home. You may have to pay more when interest rates rise or if you’ve had to file an insurance claim. The tax amount will also increase every few years as your home’s value increases.

Utilities

Many homes need electricity, gas and water service. These costs will vary from month to month. Some utilities offer “budget billing” where they charge you an average each month. This helps your budget as the monthly cost is the same every month. You can reach out to your utility companies to see if they offer this service.

Repairs

No matter how well built and maintained a home is, it’s bound to need repairs at some point during its lifetime. The amount varies depending on how big your home is and how old it is. The cost can also vary from homeowner to homeowner depending on how handy you are with plumbing or electrical repairs.

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 These Costs

Create a Budget

The first step to keeping your home in good repair is knowing how much it will cost. Create a budget by adding up all the monthly expenses. Next, factor in how much to save for maintenance and emergency repairs. Doing your homework up front will help you save money in the long run.

Shop Wisely

Before you start any home project, know what materials you need and how much they will cost. Do your research online and at retail outlets so that you can compare prices.

Do It Yourself

DIY is the best way to keep your expenses down while maintaining your home. Learning simple repairs and maintenance is one of the most important things you can do for your home. There are plenty of online resources available for learning how to repair anything from clogged toilets to leaky faucets. Use them before calling in an expensive plumber. Subscribe to free The Daily DIY newsletter for weekly articles for home repair, maintenance, and renovation. And, if you are just starting out, check out tool recommendations in 10 Helpful Tools To Include In Your Starter Tool Kit.

Set Up a Savings Account

Save without thinking about it. Set up a separate savings account for home maintenance and repairs. Let’s call this your “House Maintenance Fund”. Establish your budget, then divide that amount by how many paychecks your employer sends out each year. If that is every other week, that would be 26 paychecks per year. Divide your budget by 26. Send this amount to that savings account each pay period. Your employer can direct deposit this for you without you having to do anything. When you need to perform maintenance or repairs you’ll have the money sitting in this account ready to go.

There is no such thing as a maintenance-free home, since all homes will need repairs and maintenance. While the expense of maintaining a house can’t be ignored, there are steps you can take to control it. After all, knowing what to expect from home maintenance, and how to do it yourself, is the best way to keep your costs down.

Did you know that some maintenance and repairs could be tax deductible? What Home Improvement Projects Are Tax Deductible is a great place to start. Consult with your tax professional to find out about your specific situation.