How Much Money To Save For Home Repairs
How Much to Save for Home Repairs: A Plan for Common Maintenance
It's smart to set aside 1% of your home's value to build a robust emergency savings account, but it takes more than a rainy day fund to properly maintain a home.
While you saved for your home's down payment, you probably dreamed about all the memories you'd make once you moved in. You might have pictured raising a family or hosting holiday parties. Did you also imagine paying for expensive repairs?
When you own a home, there's no landlord or maintenance team to swing by and fix what's broken. That's all your responsibility, a reality that stuns many new homeowners who don't have an adequate savings account.
Don't get caught by surprise this year. Read about how to anticipate common home repairs so you can get ahead of the game. Once you know how much money to set aside, these repairs won't be such a shock.
Check Your HVAC Unit
Everyone's experienced their HVAC unit breaking before. It always seems to happen on the hottest summer days, forcing you to run somewhere with working A/C to make it through the afternoon without sweating half to death.
Your HVAC unit could also break during the winter, plunging your house into freezing temperatures. You shouldn't have to live bundled up in jackets and blankets while you wait for a replacement unit to arrive. Instead, check your system twice a year and call a professional to come out if you're not sure how to inspect it.
A quick inspection will find potential future issues and fix them before your unit breaks. Save up the $100 or so for preventive check-ins, and you'll buy more time to ultimately save the average $9,500 it takes to replace an HVAC unit. Since they typically last 10 to 20 years, that means you only need to save at least $500 to $1,000 per year for emergencies.
Watch Your Siding
Modern contractors usually build homes with vinyl siding that only requires the occasional pressure wash, but homes with wooden siding need extra help along the way. If you're not actively sanding and repainting your siding, it may need a repair or replacement sooner than you think.
To replace a single 170-square-foot section of your siding, you'd have to pay an average of $600 to $1,200, which doesn't add up to even half of one wall in most homes. Get an inspector to tell you what condition your home's siding is in, then maintain it based on their recommendation. With the proper care, your siding should last 20 to 40 years, which is plenty of time to save a few thousand dollars.
Inspect Your Plumbing
It's always smart to inspect your plumbing at least twice a year. Pipes burst in freezing temperatures and develop leaks during any month of the year. You'll need to set aside around $300 for a plumber to come out, but it's worth the money.
A plumbing professional will spot problems before they fully develop and determine the lifespan of your plumbing based on the material of your pipes. That information will help you decide how much to set aside for annual plumbing inspections or infrequent repairs.
Examine Your Roof
Your roof is symbolic of your entire home. It's your ultimate protection against storms and debris. Even if you bought your home from the contractor who built it, no roof is perfect. After major storms, it's smart to examine your roof for cracks, chips, or holes.
Hire a professional if you've dealt with some particularly bad weather. You'll get ahead of future problems and save more money. Roofing is typically the most expensive repair homeowners make, often costing between $4,000 to $10,000. Your choice of materials, the height and slope of your roof, and even having to remove old materials can also add to the cost, making the repairs more complicated for the roofing team.
Listen to Appliances
Another way people get surprised by the cost of owning a home is when their appliances break down. Complex machines like your washer, dryer, and dishwasher are expensive to repair because you have to track down their parts according to the brand and model.
The good news is that the costs vary depending on the appliances you have, so there's not much to worry about if they're older or cheaper. Listen to the appliances while they run for any clunking or squeaking that could indicate it needs a repair.
Budget According to Home Value
All these numbers could be overwhelming. It might be easier to base your budget around the value of your home. Again, It's smart to set aside 1% of your home's value to build a robust emergency savings account. If you bought your house for $360,000, you'll need at least $3,600 each year. That adds up to $300 per month.
Start setting aside money today and increase your monthly savings if your home is older or more expensive. You'll grow your savings account into one that can handle whatever home repairs come up in the future.