Homeownership Repair Budget
What? I need to save some money now?
What is a good homeowner repair budget once you buy a new home? Some say 1% of the purchase price per year but I think that formula may be flawed for homes there are more or less expensive than moderate priced residences. Others say about $1.00 per square foot per year which I find to be lots more logical and affordable for those with a smaller home. But is there an average that’s best to use?
Whatever the case there is a point to all this. You should allow for a repair budget because even the best DIY person will at some point need a trades person to help them out. That can be as simple a a plumbing clog or as big as HVAC or roof repairs.
So what should you do? Take an average of both numbers. If 1 percent of your purchase price equals $3,000, and the square foot rule equals $2,000, then your average is $2,500.
Now add some fudge factors. Add 10% for things like extreme weather, older condition and age, location, or anything else that adversely affects your home. If you have an older home in the desert, increase the total by 30 percent: $2,500 x 1.3 = $3,250 (or $270.83 per month).
See, it’s not that hard and you will have some peace of mind knowing that you are prepared for most emergencies. Oh and one more thing. How much is enough? I’d have enough for at least a new roof or new HVAC system because those are the 2 biggest items to repair or replace.
And when you need recommendations on who to call? I have a list available. After so many years in business, I can always find you a few good choices to interview. Call me at 760-660-0010.