Do you have a Home Maintenance Fund?

September 17, 2019
Author: New England Home Mortgage

You know that buying a home comes with many costs, with the down payment and closing costs as just the beginning.

You also have factored in all housing costs when considering monthly payments:

  • Mortgage
  • Mortgage insurance (when required)
  • Property taxes
  • Homeowners insurance
  • HOA fees (charged by multifamily living communities)
  • Utilities

Perhaps you have even factored in initial repairs and new furniture and decor for the big move. Once you make the move and become official homeowners, it is essential to consider additional costs: home maintenance and emergency costs. 

Home Maintenance Fund

Home maintenance includes all of the upkeep to keep your home up to date. Keep in mind that regular maintenance will not increase the value of the house, but will help keep the value the same (considering you sell in a similar market).

A good rule of thumb is 1% of the purchase price of the home will be needed for house and property maintenance every year. So, if your home is valued at $250,000, you can expect to spend $2,500 each year for regular upkeep. This can include property clean up and maintenance, painting the interior of the house, fixing minor issues inside the home (such as replacing a faucet or light fixture), and keeping the HVAC, plumbing, electrical systems up to date. 

Emergency Costs

It’s also a good idea to save for emergency home repairs. When saving for the unexpected, make sure your money is in a place that is easy to access. This can eliminate a lot of stress if an emergency occurs. If your home is older, emergency funds are even more important as a homeowner. 

Are you prepared to become a homeowner? Contact us to start the process!

(860) 736-2747
37 W. Center Street, Suite 208, Factory Square, Southington, CT. 06489