Posted on: Tuesday, June 28th, 2016 // under
Are you thinking about buying your first home? Congratulations! We know that homeownership offers tons of benefits for you and your family.
One of the most important aspects of successful homeownership involves money management. Successful homeownership is more than just qualifying for a mortgage. It’s also more than just making a mortgage payment every month. You’ll have to be able to cover expenses you probably don’t have as a renter.
The Minnesota Homeownership Center has created a new Home Repair Infographic titled “How Long Will It Last?” It can help you understand what some of those future repairs might be. It includes the average life expectancy and replacement costs of your home’s major systems. Just remember, the costs we outline are average for mid-range replacements here in Minnesota. You could easily spend ten times as much for high-end luxury or one-of-a-kind items.
Replacing everything on our Home Repair Infographic could cost you almost $100,000. So as a successful homeowner, you should learn to keep your systems in good working order.
We also recommend that you set aside money every year — 1% to 3% of your home’s sale price — for repairs and maintenance.
That means that if your home costs $150,000, you should set aside roughly $1,500 – $4,500 per year to save up for some of the bigger repairs. That’s an extra $125 to $375 per month that you should be saving. If you’re comparing rent vs. homeownership, make sure you include that amount in your monthly expenses.
Remember, even if your home is brand new, some day it will need these systems repaired or replaced. Every home will.
Are you facing a major home repair that you haven’t saved for? The Center has a list of Home Repair and Rehab programs that might be able to help.
Would you like to know other tips on being a successful homeowner? Nothing beats homebuyer education! Online or in-person, give yourself the tools you need to be successful.
Below you’ll find our Home Repair Infographic… feel free to share with friends (Click to see full size):