Budgeting for Home Repairs
Homebuyers know there are a lot of expenses that come along with home ownership. They plan for things like a monthly mortgage, homeowners and insurance and property taxes. However, homeowners should also plan a budget for home repairs, as they always seem to come up when you least expect it.
Older Homes- older homes were not built with the same detail as homes are built today. Often times, there are hidden problems that may lead to other problems. Especially, if the roof is old or not in great shape. For example, a roofline leak could lead to interior damage throughout the house. Experts say people should set aside $1 per square foot of their home to plan for these repairs.
Newer Homes- If your home is only 10-20 years old, experts recommend saving $10,000 a year for home repairs. Big-ticket repairs typically occur around this age of a home and often haven’t been serviced or repaired since the home was built. Think hot water heaters, roofs, windows may need updating etc. A good rule of thumb is having some money stashed for smaller repairs like leaky faucets too, that way you will always be prepared when something goes south.
Regardless of the age and condition of your home, having the right home insurance is vital. Be sure to check your coverage limits each year to ensure you still have the coverage you need.