Uncovering the Hidden Costs of Homeownership: How to Budget for Maintenance and Repairs
When we think about homeownership, images of a dream house with a white picket fence often come to mind. It represents stability, investment, and personal accomplishment. Beyond the initial excitement and the financial planning for purchase costs, there lies a less discussed, yet significant aspect of owning a home: maintenance costs.
Similar to an iceberg, homeownership hides unexpected surprises beneath the surface. For many, the realization of the amount of work required to keep a home in good shape can be surprising. “A vast majority (81%) of homebuyers are hit with a significant, unexpected repair within the first year of ownership,” according to a survey from insurance company Hippo.
Owning a home is about more than just the mortgage payments. Beyond the price of purchase, homeowners must account for property taxes, homeowners insurance, and, significantly, maintenance costs. Statistics on Annual Homeownership Costs reveal that homeowners, on average, can expect to spend 1% to 4% of their home’s value on maintenance each year. For a $300,000 home, this translates to $3,000 to $12,000 annually, a substantial sum that varies depending on the age, size, and condition of the property.
The spectrum of home maintenance costs is wide, covering routine tasks such as landscaping and HVAC maintenance to unforeseen issues like plumbing emergencies or roof repairs. A proactive approach to budgeting for home maintenance can alleviate financial stress and prevent costly emergencies. The 1% Rule suggests setting aside 1% of your home’s value annually for maintenance. For a more precise budget, the Square Footage Rule recommends allocating $1 per square foot of your home each year.
It is possible to reduce maintenance costs without compromising on the quality of care through several strategies. DIY vs. Professional Services: While DIY can save money, but it’s important to recognize when a professional is needed to ensure safety and quality. Smart Home Technologies: Investing in smart technologies can enhance maintenance efficiency, potentially saving money in the long run. Planning for Large Expenses: For significant repairs or replacements, such as roofing or an HVAC system, planning and saving over time can reduce financial strain.
Last but not least, by acknowledging these expenses upfront, homeowners can create a realistic budget that accommodates both routine maintenance and unexpected repairs. With a proactive approach to budgeting and maintenance, homeowners can enjoy the rewards of their investment for years to come.
Download the Tenafli App today and experience the convenience of finding trusted home service provider yourself. Plus, for a limited time only, use our invitation code LKDIN24 to get 40% off your first project. Don’t miss out on this exclusive offer — transform your home with Tenafli App today!
