How to Save for Home Repairs Before They’re Needed
By Hometap Team on March 24, 2019Last updated October 28, 2024.
Maintaining your home is expected, but surprise repairs can be expensive. Many experts recommend saving 1–3% of your home’s value every year, expressly for maintenance and repairs. Compounded over time, that savings account will come in handy for those emergencies that require a quick outlay of cash.
You may not use all the money you set aside each year, but protecting your financial future (and your home’s value) means saving time, money, and stress today. Here’s how to do it.
Budget for Monthly Repairs
Adding a line item to your budget for unexpected home repair costs can save you considerable time scrambling for funds when roof damage, a defective boiler, or the like, strike.
But how much is enough? The costs of owning a home don’t end at the closing. Annual home maintenance and repairs cost upwards of $2,458 as of 2023, but those figures can vary widely depending on the region, size, and age of your home and your home's systems.
Logic dictates that the younger the home, the fewer the repairs. Forbes advises homeowners with a home less than five years old allocate 1% in monthly savings while homes 25 years and older should use 4% as a guide.
Ward off costly repairs by completing these easy DIY tasks designed to preserve – and even grow – the value of your home.
When in doubt, automate! A lot of banking apps and websites today allow consumers to create different savings buckets and you can even automatically allocate a percentage of your direct deposit to each bucket. Some quick math can help you determine first how much your annual maintenance savings goal should be, and then what percentage of each paycheck should be allocated to your home maintenance bucket.
Take Charge of Monthly Maintenance
It’s easy to settle into your home and put off today what you can fix tomorrow. Preventative maintenance, however, can increase your home value and help you avoid a disaster.
Your home’s exterior is the first thing potential buyers see. It can be instantly inviting or off-putting. Even if you don’t have a green thumb, landscaping your front yard and backyard is necessary maintenance. Ask around your neighborhood for recommendations if you don’t feel qualified to do the upkeep yourself.
Regularly check the inside of your home, too. Crawl through attics, inspect vents, check loose boards on the deck, and get a closer look at your roof health. Procrastination only leads to worsened conditions and steep costs. Fixing that leaky pipe today can prevent future mold issues.
Our Home Equity Increaser Guide is a great way to stay on top of home maintenance tasks indoors and out, all year long.
Prepare for an Emergency
Despite your best efforts and planning, things do break unexpectedly. The worst thing to do is ignore the damage. That only leads to more expenses. Instead, consider your options to offset the financial emergency.
Does your home maintenance fund need some padding? Your home equity could help! Home equity lines of credit (HELOCs) and home equity loans provide access to fast cash to fund your repairs. Just make sure you can foot the monthly payments and interest to avoid deeper debt. Another option is a home equity investment. Turn your home equity into cash without monthly payments.
Be the Hero of Your Home
Homeownership comes with a good deal of responsibility. Routine maintenance and monthly savings can really save you from costly repairs.
Our free Home Equity Dashboard can help alleviate some of the stresses of homeownership, by helping you track your home value and equity, plan renovations, and so much more. Create your account today.
You should know
We do our best to make sure that the information in this post is as accurate as possible as of the date it is published, but things change quickly sometimes. Hometap does not endorse or monitor any linked websites. Individual situations differ, so consult your own finance, tax or legal professional to determine what makes sense for you.
