There are a lot of costs associated with becoming a homeowner. Maintenance fees can get expensive, especially if you aren’t prepared for them. Dean Graziosi explains on his website that determining how much your maintenance costs will be over the years can help you decide whether or not you are ready to become a homeowner.
Maintenance expenses can range anywhere from roof repairs or replacements, to plumbing issues and possible electrical work. Calculating actual maintenance costs can be difficult, especially since you never know what will go wrong at any given time or what will need to be replaced and when.
One safe assumption you can make is that you will pay around one percent of your home’s value each year in maintenance costs. So, if you paid $200,000 for your home, you should count on spending a minimum of $2,000 each year on general problems and repairs. While some things will be covered by your homeowner’s insurance, this certainly won’t be the case with regular maintenance necessities.
Always plan for overage. Again, you never know what will happen and how much it will cost to repair. Because you are a homeowner, you are responsible for any and all repairs that need to be made. That means having the money available when you need it and in order to ensure this happens, you’ll need to add this possible expense into your yearly budget.
Let’s take the $2,000 example from above. Add a sure $1,000 to that which would equate to $3,000 just in case. You’ll also want to keep some cash in reserve for the really big problems. Now divide that $3,000 by 12 and you’ll need to make sure you have $250 set aside each month for maintenance.
Check your roof and siding. Dean Graziosi suggests gathering estimates or visiting a home improvement store in your area to get an idea of what roof and siding repairs may cost.
Plumbing is another area to definitely consider. This, however, can be a difficult expense to calculate. This is because the problems that could occur can range vastly from a leaky faucet to a broken pipe. Depending on how much damage you have when such problems occur, the costs could really rise. For example, a broken pipe that is caught immediately will require a plumber, but if any amount of time goes by before the break and subsequent mess it makes are noticed, you may need to call in flooring professionals, repaint or wallpaper walls, and replace fixtures.
You can learn more about calculating home maintenance costs by visiting Dean Graziosi’s website. One great way to ensure you’ll have enough cash to cover them is to begin saving now. After all, being a homeowner requires a significant amount of planning and preparation even after all the papers have been signed.