A home maintenance budget can help you pay for repairs before your house's trouble spots become expensive problems.
Becoming a homeowner may fulfill a dream, but living that dream includes some hard realities. One of the primary financial realities of owning a home is the cost of maintenance needed to preserve or enhance the value of the home and surrounding property. To effectively do that, a homeowner's annual budget should include money set aside in a maintenance fund that can be tapped when things break or improvements are needed.
Why Home Maintenance?
Regular home maintenance is an investment with several long-term and short-term advantages. Investing regularly in your home and property can ensure high value when the time comes to sell. Early attention to maintenance needs can also prevent extreme and costly repairs that result if initially small problems are allowed to worsen. Sudden unforeseen problems can be reduced or avoided, saving money in the long run. Conversely, deferred maintenance will certainly reduce the value of your home and can leave you short of money or force you into debt when sudden serious problems occur.
How Much to Budget?
Various sources, including the financial advice website The Simple Dollar and the Consumer Credit Counseling Service of South Texas, recommend setting aside between 1 and 3 percent of the value of your home and property annually for maintenance needs. That means setting aside money from your monthly pay to fulfill this percentage. Socking this money away regularly will give you a ready pool of funds for preventive maintenance or repair emergencies.
Home Inspection
After enacting a regular home repair budget, you should inspect your home regularly for damage and improvement needs. A methodical inspection process will allow you to list various repairs needed and to prioritize them, instead of simply reacting when things break. Begin with your home's foundation, then examine its exterior, including walls, windows and things such as porches or decks. Next, assess your roof and the home's interior. Finish with attics, basements and garages. As you inspect, list the things that appear in need of repair. Prioritize these repairs. The need for a new coat of paint, for instance, would rank lower than a leaking roof.
Budget Issues and Considerations
Your home repair budget can also be used for home improvements. As you save, you may have more money than you need in a year for repairs. If repairs are up to date, consider using the budgeted money to enhance your home. By improving exterior and interior elements of your home, you can increase its value and enjoy its enhanced features.
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