Purchasing a home is an exciting step that requires careful financial planning. As a homeowner, you’re going to need to be prepared for home maintenance and repair in your budget. Charles is here to help you predict the costs of home maintenance with some of the tried and true tricks in the industry.
The 1 Percent Rule
A popular trick in the industry to predicting the costs of home maintenance is the one percent rule. This rule says that you should be setting aside one percent of the purchase price of your home for ongoing maintenance and repairs. So for example, if your home was purchased for $250,000, then you should set aside a budget of $2,500 for maintenance and repairs per year.
This is simply an average that homeowners could expect. There will be years that you will spend more than your expected one percent and there will be years that you spend way less.
The Square Foot Rule
Another rule besides the one percent rule to help predict the costs of home maintenance is the square foot rule. This rule says that you should budget $1 for every square foot of your home for maintenance and repair. The more square feet you have to work with in your home, typically means the higher your home maintenance and repair costs will be on a yearly basis. If you choose to use this rule in preparing your budget for home maintenance and repair costs, you should also account for the labor and material costs that are associated with maintenance.
Additional Factors to Consider
There are other factors that will come into play when it comes to predicting your home maintenance and repair costs.
Age: New homes are going to require less maintenance than homes that were built 15-20 years ago. Older homes often require major maintenance in comparison to newer homes such as roof repairs, plumbing overhauls and so on.
Location: A home that is located at the bottom of a hill, in a floodplain, or in other areas that create environmental stresses will play a role in the amount of care and maintenance your home will need.
Condition: The condition a home was kept by previous owners will also contribute to home maintenance and repairs. The older a home is the more important it is how a previous owner took care of the home, or lack thereof. On the flip side, even a newer home with a previous owner that didn’t take care of the home will also mean higher home maintenance costs and repairs.
Save money on your home maintenance and repair costs with a Charles Club membership! Learn more today.