Average Annual Home Maintenance Cost
January 29th, 2010 | 
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In order to be adequately prepared for the expenses that come with home ownership, you need to have a home maintenance fund set aside to provide for repairs and upkeep. How much do you need to save? They best way to estimate the amount needed for your house fund is with the average home maintenance cost. Experts generally recommend that you allocate 2% of your home’s value each year for such expenses. Let’s say that your house is worth $250,000. Two percent of that amount is $5,000. That means that you can expect that the repairs and maintenance expense for your home in any given year will average $5,000.
Now, most homeowners do not have $5,000 lying around when the furnace stops working or when the roof starts leaking. So how does one prepare? Divide the $5,000 annual amount by 12, and you will find that the average monthly expense is a more reasonable $417. By setting aside $417 each month in an account designated for your home, you can know that you have the funds needed to care for your most valuable asset, your house. Obviously, in most months, you will not need to make hundreds of dollars in repairs, so the value of your new account will build quickly. Take care to use these funds only for home maintenance. You will be tempted to tap the funds for an island vacation, or for temporary shortfalls. Do not do it! The vacation will not have been worth it when you come home to a house with no air conditioning, and no money with which to pay the repairman.
What do you do if a large expense needs to be paid before you have built up a sufficient balance to pay it out of the fund? You have a number of options. First, avoid new debt at all costs. If you have to pay interest on this repair, you will make it even harder to save for the next one. You may be able to make the repairs yourself at a significant discount to hiring someone to do the same job. A handy friend may be able to do the work for you, if you supply the parts. Have a garage sale, or take on a second job, but don’t take out a second mortgage!
By taking steps to prepare BEFORE you are on the phone with the repairman, you can be sure that you will not break the bank to pay for major appliance repairs. The peace of mind you get when you act ahead is worth every penny. Don’t spend another night awake worrying about the “what ifs” in your home. Start thinking about your average home maintenance cost today.
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Posted in Do-It-Yourself, Home Maintenance, Home Maintenance Costs | 
Tags: cost, Home Maintenance, Maintenance, Maintenance Cost
One Response to “Average Annual Home Maintenance Cost”
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