on Oct 21st, 2010Annual Repairs Add to True Cost of Home Ownership
You’re a homeowner! Congratulations! You successfully saved and budgeted for a down payment, closing costs, and perhaps a minor update or two. You’ve signed on all the dotted lines, the keys are yours and you can now settle in to experience one of the greatest joys of home ownership…. repairs and upkeep.
The true cost of owning a home goes well beyond your mortgage payment. Maintenance, repairs, home improvements and decorating (after all, you can’t buy a new house without also buying at least one new piece of furniture!) may have you thinking you’ve purchased a haunted house rather than your dream home. And just because your home inspection didn’t reveal any imminent costly repairs doesn’t mean there won’t be any. No sooner had we closed on our house last year than the garbage disposal began spewing out ground-up food under the sink. That’s gross, I astutely noted, and immediately called my beloved handyman. A new garbage disposal and few hundred dollars later and all was well. Until we had to replace a critical part of the plumbing process in the lower level bathroom, that is. And then the weather warmed up and we noticed that the deck needed restaining. And so on…
Experts suggest that in addition to your mortgage payment, you should plan on spending AT LEAST 1 percent of the purchase price of your home on annual repairs and maintenance. That’s $2000 a year AT LEAST on a $200,000 home.
Of course the age and condition of your home will play a big part in how much you spend each year, but that doesn’t mean new homes are exempt from additional costs beyond closing. Landscaping and window treatments, in particular, are expenses you’re likely to incur with a brand new home.
The good news is that money you spend now on maintenance and repairs will pay off later if you decide to sell, since buyers are generally looking for homes that have been well kept. Not only that, but small repairs now can prevent more costly repairs later. Any sort of leak, for instance, should be attended to right away since excess moisture can result in mold.
Of course you can save money by tackling some home maintenance tasks yourself. Before you start, though, it’s important to know the difference between the projects you can take on yourself, and those that are better left to a professional. Important home maintenance tasks that just about anyone is qualified for include regrouting tile, restaining a deck (my thoroughly UN-handy family being the exception) and cleaning gutters. For projects that require more skill or time than you have, check with your local real estate agent for a list of reputable, licensed contractors.
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