Planning your budget
To start with confidence, Barish explained how to think about your budget when getting into the homeownership game. âIt’s important to have a realistic expectation of what it will cost to maintain a home when deciding whether it’s time to buy,â she said. âIt’s easy to underestimate the costs because in a rent situation your landlord usually does most of the repairs and general maintenance of the house. maintenance and occasional repair of devices.
If you decide to buy a condo, Barish noted that while you may not need to repair the exterior of the house yourself, you will need to budget for a monthly condo association fee, which can reach hundreds of dollars per month.
Barish explained that a general rule of thumb is to set aside at least 1% of the purchase price or value of the home each year for home maintenance. However, you should think about adjusting this percentage based on the age of the home, and factor in any cosmetic updates you might want to make as you move in. For example, if the house is a little older, you might want to budget more tightly. at 2%, and if you have, say, a lot of painting to do or are looking for new appliances to spruce up your kitchen, 3% may be a better number for the first few years.
Typical residential maintenance expenses, from the small (paint and furnace filters) to the large (repair / replacement of appliances or HVAC, a new roof or a kitchen renovation) – these are the most common costs. common things to consider when buying a home.