Nothing cramps your homeowner style more than unexpected home repair expenses. The cost of these repairs can add up quickly, especially in California where homes are more likely to require frequent maintenance.
A rule of thumb is to set aside 1%-4% of your home’s value each year for maintenance. However, this figure may not be accurate for your situation.
Consider the Age of Your Home
When figuring out how much to set aside for home repairs, one of the most important factors is your house’s age. As time goes by, materials like water pipes and electrical wiring begin to deteriorate and can cause significant damage if not replaced in a timely manner.
Generally, it is recommended that homeowners set aside 1% to 3% of their home’s value annually for maintenance and repairs. However, this number can vary based on the size of the home and its condition.
Luckily, there are several ways to determine your home’s age. You can start by contacting your title company. They will likely have a copy of your deed and mortgage and can easily provide you with the information you need. Alternatively, you can ask your neighbors, as they may be able to provide you with some clues about the age of your home.
Set Aside Money Each Month
Buying and maintaining a home are some of the most significant expenses in life. While a mortgage and property taxes can take up a significant chunk of your budget, other, more sporadic costs should also be taken into account, including home maintenance and repairs.
The general rule of thumb is that homeowners should set aside 1% of their house value for annual maintenance and repairs. However, this is a broad estimate that may not be accurate for everyone.
The best way to save for home repairs is to create a dedicated savings account and transfer funds into it regularly. This will prevent you from dipping into other accounts when an emergency repair or renovation comes up. It is also wise to keep this account separate from other savings accounts for convenience and to minimize the temptation to spend the money on something else.
Prioritize Repairs
The cost of owning a home goes far beyond your mortgage or rent payment. You also have to budget for regular maintenance and unexpected repairs. It is important to prioritize these expenses and set money aside each month to ensure you have enough in case something goes wrong.
Some repairs may be urgent, while others can wait. Urgent repairs should be addressed immediately to prevent further damage and reduce costs. This includes tripping electrical breakers, leaks, and cracks in your walls. These problems will only get worse and are more costly to fix later on.
Using apps like Digit, Chime, or Acorns can make it easier to save for these expenses by automatically depositing money into your savings account. Additionally, you can cut back on unnecessary spending or take on a side hustle to boost your income.
Hire a Professional
A home is a major financial investment, and regular maintenance is essential to protecting it. However, many homeowners find that unexpected repairs can be costly. Rather than turning to credit cards or draining your savings, it’s important to create and follow a budget for home repair and maintenance.
A dripping faucet, clogged drain or broken refrigerator might seem like minor problems to some, but they can add up quickly. As a new homeowner, it can be hard to know how much you should set aside for home repairs and maintenance. The following tips can help you get a better handle on these expenses.
Schedule Regular Maintenance
Aside from a mortgage and property taxes, homeowners have many other expenses. These costs can put a strain on any budget, especially with skyrocketing inflation and labor and building material prices.
However, a homeowner’s ability to perform maintenance tasks themselves can help reduce costs. Some repairs can be DIY jobs, while others should be done by a professional. If a repair could cause further damage or injury to the house or its residents, it’s best to call in a professional.
The best home warranties in California might say that when it comes to home maintenance, there are many tasks that can be scheduled in advance. This can make it easier to stay on top of routine chores and prevent costly emergencies from arising in the future. This includes tasks like cleaning, landscaping and repairs.
