Budgeting for unexpected home repairs helps ensure you have enough money to keep your home safe and in good working order. No one wants to deal with a leaky roof or a toilet that won't flush. Another great way to budget for home maintenance is to save 10 percent of your main monthly expenses each month. That is, 10 percent of your mortgage, 10 percent of your property taxes, and 10 percent of your insurance costs are placed in a savings account each month.
Budgeting for home maintenance and repairs can seem overwhelming, but if you start saving a small amount on a regular basis, you're more likely to have the money to pay for repairs and maintenance when needs arise. On the other hand, if you live in a region with a dry climate where temperatures don't drop too low, your home will likely need fewer repairs. Weather and climate can also be factors that add to the budget for home maintenance; houses in areas with heavy rain or in a generally humid climate may suffer more wear and tear over time, so it is generally recommended to save more than 1 percent. Once you establish a baseline for how much you think you should budget for home maintenance, the next step is to customize your numbers.
The following table shows some general guidelines to follow when budgeting based on the age of your home. Older homes have a history and luggage of other people's repairs, so they are generally more likely to need repairs, and repairs will be complex and more expensive. A little knowledge and planning go a long way in understanding how much should be budgeted for home maintenance. Before planning a budget for home maintenance and repairs, it's important to first know what that entails.
These costs can also increase based on the exact age and size of the home you buy, so it's important to do your research to better understand how exactly to budget your home. The overall estimate of how much to budget for home maintenance is between 1 and 4 percent of this value per year. In addition to ongoing maintenance and repairs, you'll likely want to make improvements to your home over time, such as new carpets, kitchen countertops, or windows. The following table shows how you can adjust the annual maintenance budget for your home based on the location of your home.
When you keep your home in good condition with tasks such as those listed here, you reduce the chances that your home will need repairs.