Whether you’re a first-time buyer or an experienced homeowner, at some point you’ll need to make home repairs. And those repairs will cost money. It’s something first-time buyers often don’t think about ahead of time and experienced owners may have learned the hard way. So budgeting at least some money in advance for these expenses is a must. Here’s how to figure it all out.
The first step is deciding how much to save for home repairs. Here are a few different ways you can approach budgeting.
Once you have a starting point, you’ll need to adjust your budget to account for the specifics of your home.
Add 10 percent of your basic budget per year for each factor that increases the likelihood of repairs. For example, a basic budget of $2,000 per year for an older home in an area where bad weather is common would increase that budget to $2,400 per year.
While no one can guess exactly what your home repair costs will be, being prepared and budgeting in advance will save you lots of headaches later and allow you to enjoy the benefits of homeownership for years to come.