Maintenance Budget_______

As we all know, over time a home will need ongoing maintenance and repairs. It is important to budget for this. One rule of thumb is to allow 1% of your home’s value each year to cover this. For example, if your house is worth $500,000 then allow $5,000 per year. If nothing needs to be done in a given year, then the money is set aside. Looked at as accumulated savings, this would eventually be enough to replace the roof… and then the water heater, and so forth. “Pay me now or pay me later” is a saying that indicates that those who fail to maintain their homes will eventually pay more for a repair or sell for an lower price as a result.

One way to understand the extent of maintenance needed and the costs involved is to have a professional home inspection conducted. Most inspectors will provide an estimate of the remaining service life for older components, and an estimate of the repair costs. You can visit www.LivingWithMyHome.com for help with your planning.