The biggest problem with home maintenance might be trying to budget for it.
The truth is, many homeowners just don’t know how much to save!
Here are three tips for planning your home maintenance budget.
Tip 1: Calculate
There are a few different ways to calculate how much you should save.
You could simply calculate $1 per square foot each year, but that’s not totally reliable.
Fool recommends, “Generally speaking, you should expect to spend between 1% and 4% of your home’s value each year for maintenance. This means that if the cost of your home is $200,000, you’re looking at spending anywhere from $2,000 to $8,000 a year on upkeep.:
Older homes might be on the higher end while newer homes might not need as much.
Tip 2: DIY when you can
If your budget is tight, it’s helpful to learn some handyman skills and do some of the maintenance yourself!
However, know your limits.
Northwestern Mutual said, “DIY-ing simple repairs can be worthwhile to help save on costs. That said, leave complex tasks like plumbing and electrical issues to the professionals. An amateur mistake could turn a simple project into a pricey fix-up job or risk your safety.”
Tip 3: Know the difference
Start by learning that there is a difference between home maintenance and major home repairs.
Fool reported, “If you need a major home repair, like replacing a roof or water heater, remediating mold, or fixing a sinking foundation, you’re likely to spend much more than what the above calculations allow for. That’s why it’s wise to go into homeownership with a healthy savings account.”