I recently asked my Facebook friends about some of their biggest questions or concerns about purchasing a home and this was a question that was asked. It’s a great question and one that isn’t asked or considered often enough! Here are my thoughts.
A good rule of thumb is to set aside 1% of your home’s property value (annually) for routine repairs. So if your home is worth $250,000, you’d set aside $2,500 for the year.
My advice would be to set aside a “home maintenance” account. This account could be established at the time you purchase your home. If your home is newer (5 years old or less), repairs are anticipated to be much less than if your home is older.
Of course, repairs could amount to more than the amount that you’ve set aside for the year, but in some cases, it will be less. In the years that repairs are less than anticipated, I suggest rolling that amount over to the next year so you’ll be prepared in case of unexpected capital repairs (like a roof, water heater, or HVAC replacement).
What are your thoughts? Do you plan funds for home repairs? Leave me a comment and let me know!
Sharetha M. Holman is a licensed NC real estate broker with Apex Realty of the Carolinas, Inc, primarily serving the Charlotte NC and surrounding areas. Connect with me on Facebook, Instagram, and Twitter!
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