How to Create a Home Maintenance Budget
You may believe that your roof will last for another decade or that the water heater will be good for at least another five years. However, there is no guarantee that a storm or some other unforeseen event won’t render those or other components useless. Therefore, it is important to create a fund to maintain your home long before you actually need to use it.
How Much Is Enough to Maintain Your Home?
There is no right answer when it comes to how much money you should be setting aside to maintain your home. A good rule of thumb is to save about 1% of the home’s purchase price each month. However, if you can’t afford to hold that much back each month, putting even a few dollars into an emergency fund can be helpful. It is also important to consider whether your home is under warranty. If it is, you may only need to save enough to cover a deductible.
Do You Have Insurance?
Your homeowners’ insurance policy may cover some or all of the damage that your property sustains. This may be especially true if the damage is caused by a hurricane, flood or some other natural disaster. However, you should know that insurance policies generally don’t cover damage caused by homeowner negligence. Therefore, it is important to properly maintain a garage, HVAC system or other important components.
Ask for Advice Before Buying a Home
Friends, family members or financial professionals may be willing to provide advice and guidance to those about to buy a new home. The best Las Vegas mortgage brokers may also be able to help you take steps to ensure that there will be money to cover home maintenance costs.