Budgeting for Maintenance
If you're saving up to buy a house or already own one, it's important to set aside money for home maintenance. Many people overlook this aspect of home ownership, but it's crucial to keep your home in good repair. Learn more on saving for home R&M
The importance of spending money on home maintenance each year.
The average price of a house in New Zealand reached $1 million in early 2022 with often the family home being a persons largest asset. This makes it even more important for homeowners to allocate funds for annual home maintenance.
There are several reasons why spending money on home maintenance each year is essential. First, it helps prevent small issues from becoming bigger and more costly problems. Regular maintenance also makes your home easier to sell and can improve its efficiency, leading to lower energy bills. Additionally, addressing potential hazards early on ensures a safe living environment.
Another crucial reason to invest in home maintenance is for retirement planning. Many New Zealanders may not realize the amount they need to save to comfortably stay in their homes after retiring.
There are three approaches to property maintenance:
Fixing things only when they break: Ignoring maintenance until something goes wrong is
a risky strategy. It not only puts your home at risk of serious damage but also reduces its
resale value.Paying for repairs as they occur: While it's common to pay for maintenance as issues
arise, relying solely on this reactive approach can be challenging when major repairs are
needed. This might lead to falling behind on necessary fixes and underestimating the
actual condition of your home.
In summary, regularly setting aside money for home maintenance is a wise investment. It not only safeguards your property but also contributes to a more enjoyable and comfortable living space.
How much money should I save for home maintenance?
The amount you need will depend on your home type and its condition. For example, a wooden villa with a garden may need more maintenance than a brick townhouse with a paved courtyard.
Consider:
How much you currently spend on maintenance
How many more years you plan to stay in your home
What regular maintenance your home needs
Note that maintenance is different from urgent repairs. Maintenance includes tasks like replacing cracked pavers, repainting your house every 5-10 years, and trimming trees regularly.
A good rule is to save 1% of your home's purchase price for maintenance each year and adjust based on the factors above. For a $450,000 home, $4,500 might not be enough; saving 2% of the purchase price may be better. On the other hand, for a $1,000,000 property, budgeting $20,000 for repairs is probably too much; setting aside $10,000 for maintenance might be more realistic.
How often do I need to replace parts of my home?
Knowing the expected lifespan of different areas of your home is helpful for budgeting.
Roof: Regular maintenance can extend its life; for example, tile, copper, or slate roofs can last more than 50 years.
Deck: Wood decks may last around 15 years, while structural wood can last up to 30 years.
Gutters: Aluminum gutters should last about 20 years.
Fences: Wooden fences may last around 15 years, extending to 20 years with regular maintenance.
Trees: Trim large trees every 5 years. Location of Tress is also is a consideration. Are they located under power lines, or where they have the potential to cast to much shade.
Pavers: Depending on material, outdoor pavers can last 50 to 100 years; budget for occasional replacements, however depending on how they are laid upkeep may be required to grout and pave sand.
Considering maintenance before moving into a new home and budgeting for upkeep will help keep it in good condition. While maintenance can be expensive, regular and schedule maintenance can help minimize issues and enable you to budget to cover costs of home ownership.