If you own a home it’s important to have an emergency home repair fund, you never know what may stop working or need repairing suddenly and you’ll be thankful that you saved some money for a rainy day. It is estimated that on average home repairs normally cost between 2-4% of the home’s value. So if your home costs $200,000, it’s safe to say saving anywhere between 4,000 – 8,000 is a good idea.
But you don’t burden yourself too much, decide on a figure you can afford on a monthly basis and put that aside for your emergency home repair fund but you need to be vigilant with it.
Maintaining your home can reduce, but not totally eliminate, the cost and frequency of repairs. On average, monthly home repairs cost $25.00 and varies based on your location and the type of repair. According to an Angie’s List analysis of Census Bureau figures. Generally, areas with harsher climates have higher labor costs when it comes on to home repairs.
How much your home repairs costs depends on what breaks and how badly it’s damaged. As a rule of thumb reserve 1% of your home’s purchase value every year for home repairs. At the end of each year, you may have some left over that you can roll over to the following year. Eventually, you may have repairs that will wipe out your savings but you can a take advantage of a home equity line of credit can be a low-cost way to afford your home repairs.