It can be challenging to properly calculate your expenses for your budget as a first-time home buyer. There is often more to consider than closing costs and the price of immediate repairs. . Whether you are looking for a home or already own one, you can bet that there will be annual repair and maintenance costs. Here is a home maintenance budget guide to help you prepare for some potential routine expenses.
How to Budget for Routine Maintenance
The rule of thumb is that you need to put aside one percent of your purchase price per year to cover any of the maintenance costs that occur. For example, for a $500,000 house, you’ll need to put away $5,000 per year for routine repair and maintenance. With that in mind, here are some examples of what your standard budget could cover:
- Gutter cleaning and repair
- Plumbing and faucet repair
- Roof repair (leaks, damaged shingles, loose flashings, etc.)
- Re-insulating the pipes and attic
- Heater repair and replacement
- Furnace and sump pump installation and repair
- Window maintenance
- Driveway repair and replacement
- Repainting the interior and exterior
- Garage door repair
- Exterior door and storm door replacement
- Chimney maintenance and cleaning
- Floor cleaning and repair
- Appliance repair and replacement
- Cleaning costs (power washing, equipment, supplies, etc. )
- New supplies (garden hoses, batteries, etc.)
- Emergency repairs
How to Budget for Big Projects
Don’t forget to also budget for big-ticket items like structural repairs and roof and window replacements. The age of your home and the warranties in place can help you determine how much you will need to budget for. As a general guide, if you own a home between five and 20 years of age, an annual budget of three percent should suffice. For older properties, a budget of four to five percent may be required depending on what systems are coming up for replacement. Here are some examples of bigger projects to keep on your radar:
Most roof systems will last upwards of 20 years, some even longer. However, you’ll still need to start budgeting for this from the day you move in, as the replacement costs can vary between $8,000 and $30,000 depending on the size, pitch and roofing materials. There will also come a time when you need new gutter systems, which can set you back thousands of dollars. So don’t forget to factor this into the budget that you set.
Replacing old windows can cost you between $10,000 and $30,000 depending on the type of window you want, how many you want to replace, and the size and style of your home. Most window systems last 15 years or longer, but you may want to replace them sooner to take advantage of the latest energy-saving window technology available.
Foundation issues can also be costly to repair. Small cracks can be taken care of by your standard maintenance budget, but if your house starts to sink, move, or form large cracks, this may indicate more serious structural issues and will require more expensive repairs to the foundation, frames, or beams.
Vinyl siding, brick pointing, and new concrete costs can add up quickly. Even a new asphalt driveway or flooring can be required every five to ten years, so make sure you budget properly for it. For example, new flooring can range from $2,000 to $5,000 depending on the square footage of your house and the type of floor you want to install.
Water in the wrong places can destroy ceilings, floors, and walls and make the metal in your home rust. Leaky roofs, burst pipes, broken fixtures, or sewage backup can lead to costly repairs. Not only will the source need to be fixed, but moisture buildup can lead to mould, which can also be costly to remove. Depending on the surface area and the equipment needed to remove the mould, you could be looking at $3,000 to $30,000.
While the average well-maintained furnace can last between 15 and 20 years, this will be a cost that you will have to plan for, especially if you live in an older house. You can expect to pay between $3,500 to $5,500 depending on the design of the furnace, the square footage of your home, and the condition of your home’s insulation.
Owning a home can come with many unexpected costs, which is why it is important to have a proper maintenance budget. Looking to mitigate your maintenance costs with a rental property, contact us at CLV Group and InterRent REIT to help you find your next place to call home.