Budgeting For Home Maintenance – Some Tips

Like taking care of yourself and staying in shape, taking care of a home is much the same in that it requires constant dedication and a long-term focus. In some areas across the country homes are subject to some of the hottest and most humid summers in the nation, whereas in other areas it is the cold and snow that tend to be bad. Other natural elements that act to degrade a home’s exterior are UV rays from the sun, rain, wind and natural erosion.
These types of problems can have the effect of undermining your home’s ultimate market value. Plus, spending relatively small amounts of time and money can keep small problems from turning into much larger ones at a later point. Plus, even when the cost of repairs is factored into the purchase price, buyers are less inclined to buy a home that represents a large repair or renovation project.
Here are some considerations:
A check of your home’s basic structural and functional components should be checked on an annual basis. Things like gutters, foundation, water heaters, air conditioners, roofing, etc. should be checked to the best of your ability to detect a problem. A certain portion of your income should be allocated for nothing but home maintenance. It has been estimated that as much as 3 percent of a home’s market value is spent annually on maintaining a home.
Don’t let future repairs take you by surprise. For example, in areas of the country where summers can get quite humid and you may find yourself using the air conditioner for extended periods of time. If you have a 15-year old furnace, for example, you should strongly consider saving a portion of your income for a replacement unit in the near future. As well, you should be aware of other things that are susceptible to breaking down, such as roofing, siding and so on. By having a good idea of when you will likely have to repair or replace certain things you will be less likely to be caught off guard by an unanticipated expense.
If you are not in a position to pay for maintenance:
Not being able to pay for needed repairs in a timely manner is bad enough. If you are in a situation where needed repairs have gone unaddressed for years, then this is a good indicator that your home is simply too expensive for your means. This will cause you problems when it comes time to sell your home as the build-up of maintenance issues will make your home less marketable.
If you should fall into such a predicament don’t just sweep it under the carpet. Take action. Taking an objective look at your finances can help you gain a clear perspective. Make the repairs you can afford to make and then consider moving into a less expensive home.
Some final thoughts:
Always consider the cost of maintenance when evaluating the cost of buying a home. It’s better to buy a slightly less expensive home and be able to afford the required maintenance than to buy a more expensive home and not be able to maintain it. The former will maintain its value over time and likely appreciate, where as the latter will likely depreciate.