Planning for the Extra Expenses of Homeownership
When deciding how much of a home you can afford, don't forget to factor in the extra expenses of homeownership that extend beyond your monthly mortgage payment, taxes, insurance and utilities.
Home maintenance helps your home run efficiently and keeps your house in good condition. There are a few popular rules of thumb used to estimate how much homeowners will spend annually on home maintenance.
- The 1% Rule: Budget 1% of the purchase price of your home each year to go towards home maintenance.
- The Square Foot Rule: Budget $1 per square foot of your house per year for maintenance and home repairs.
Keep in mind that these general rules for home maintenance and repair budgets DO NOT take into consideration many factors like the age of your home, the location, the weather of the area where you live and the condition of your house. All these factors can affect your yearly maintenance and repair expenses.
Household items for your new home
There are many items that first-time homebuyers may need to purchase for their new home. See below for a list of some of the popular items new homeowners buy within the first few weeks of moving in.
- New locks and keys
- Garden hose
- Lawn mower (if applicable)
- Snow shovel (if applicable)
- Garden tools
- Curtains or blinds for the windows
- Light bulbs
- Tool kit
- Fire Extinguisher
Making sure things like maintenance, repairs, and additional household items are included in your budgeting will help you decide how much home you can comfortably afford. It pays to speak with local experts early in the home buying process so you can focus on the right price range and buy your dream home.