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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1498  
Subject: Re: Retirement Budgeting Date: 10/23/2006 2:49 PM
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I think every home owner knows there is always of a list of things that need attention. Many of those take a trip to the hardware store and about $20--if you are reasonably handy. But some like a new roof can cost thousands.

So I would say everyone who plans to own a home should allocate something in their budget for such repairs. But the right number varies widely. If you live in a highly appreciated house, worth say $500K or more, the number you use to maintain the property will be higher than if you live in one of those famous midwestern bungalows that might still be bought for under $100K.

Similarly the age of the property will have a major effect. A newer house, may well have little required for the first 10 years or so. Then starting with the hot water heater, you have a regular series of repairs. Roof typically at 20 years. Furnace at 25. AC at about 20. Various major appliances at 10 to 15. Older houses can be kept in shape for over 100 years, but costs tend to escalate especially as majors like rewiring, new plumbing, chimney repairs, and major remodelling can come up. Here the range has to get wider.

As a basic number, I would say $1K per year will cover most homes when they are new. And if you don't spend that bank it, because some jobs are $3K or more and will eventually come up.
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