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What are your home maintenance and repair costs?

Home Mortgages and Home Buying What are your home maintenance and repair costs?

  • Avatar jz 
    Participant
    Status: Physician
    Posts: 680
    Joined: 01/09/2016

    If you are a homeowner,  how much do you pay for maintenance and repair of your home/ home value?   If you’d annualize your costs of painting, roof replacement, replace the driveway,  replace the water heater, replace the leaky windows, replace major appliances, cleaning after the squirrel falls through the chimney and wrecks the place, cost of fallen tree removal, costs of landscaping renewal, restraining the deck, replacing the water softener, repair animal damage to the gazebo.

    I am not referring to upgrades, just basic maintenance and repair.   Now divide this annualized cost by the value of your home.  Don’t underestimate to salve your ego.

    I ask this for educational purposes;  to educate the younger doctors interested in home ownership.

     

    *** and if you decline to maintain and repair,  your home will get dated and creepy.   You  may be OK with living in a dated and creepy home, but you’ll have catch up due the decade you decide to sell.  Either maintain and repair,   or depreciate.

     

     

    #71704 Reply
    Liked by Zaphod
    Avatar janettebournes 
    Participant
    Status: Physician
    Posts: 191
    Joined: 03/05/2017

    For 2016,

     

    AC Repairs = $1500

    HOA Fees = $3000

    Insect Maintenance = $1000

    Homeowner’s Insurance = $1200

    Cable TV / Internet = $1000

    Electric Bills = $800

    Gas Bills = $500

    Security Company Fees = $100

    Water Bills = $600

    Outdoors Lighting Maintenance = $600

    Security System Maintenance = $1000

     

    Total Annualized Costs / Home Value ($500K) = 0.0226

     

    I get the feeling I’m missing some costs. I will admit to rounding down on almost all the costs above 🙂

    This year is going to be much worse as we have significant damage from the hurricane season.

     

    EDIT: CM brought up a good point, our house is <4 years old. I suspect our costs would be much higher with an older home. In the last month alone, my folks have spent thousands of dollars trying to trap the squirrel who keeps chewing through electrical wires in the attic as well as catch the beast that’s tearing up the back lawn. They really need to downsize to an apartment!

    #71707 Reply
    CM CM 
    Participant
    Status: Physician
    Posts: 1188
    Joined: 01/14/2017

    .

    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried bags for Cyd Charisse (gracious). Hosted epic company parties after Friday night rehearsals.

    #71708 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6327
    Joined: 01/12/2016

    Havent owned long enough to have good info…but;

     

    Rental: was fixer upper we lived in for a year. Replaced fence, did landscaping cleanup, put in new patio door, refinished tub (nightmare). 6k. Oh yeah AC went out, 2k (thank god for home warranty, what a great deal). 3.4% over two years, 1.7%/y.

    House: 1y now. Have tried not to do anything that wasnt absolutely necessary. Trimmed trees-350. Landscaping-120/mo. Water heater stuff-50. Roof touch up-400. 0.5% We have really done the bare minimum as it really makes no difference, though house was purchased with an eye towards minimal needs and maintenance.

    Have tried to not do anything that wasnt necessary, but did upgrade pool pump to variable for electric costs for 400. Pool will need resurfacing soon but am trying to drag it out and will be about 4k.

    Houses are money pits. These numbers include that I do quite a bit myself or with help from my dad like the patio door was done ourselves, changed pool pump myself, cut down a small tree, will trim palms to limit of saw, fixed water heater two weeks ago etc…so if you pay first before seeing if you can do it (I also had prior experience/comfort) it would likely be much much more.

    #71709 Reply
    Liked by hatton1, CM
    CM CM 
    Participant
    Status: Physician
    Posts: 1188
    Joined: 01/14/2017

    For 2016,

     

    AC Repairs = $1500

    HOA Fees = $3000

    Insect Maintenance = $1000

    Homeowner’s Insurance = $1200

    Cable TV / Internet = $1000

    Electric Bills = $800

    Gas Bills = $500

    Security Company Fees = $100

    Water Bills = $600

    Outdoors Lighting Maintenance = $600

    Security System Maintenance = $1000

     

    Total Annualized Costs / Home Value ($500K) = 0.0226

     

    I get the feeling I’m missing some costs. I will admit to rounding down on almost all the costs above ????

    This year is going to be much worse as we have significant damage from the hurricane season.

    Click to expand…

    I didn’t include utilities, cable, insurance, or taxes; just repairs and maintenance items (water heater replacement, lawn care, power wash and deck sealing, etc.)

    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried bags for Cyd Charisse (gracious). Hosted epic company parties after Friday night rehearsals.

    #71710 Reply
    Vagabond MD Vagabond MD 
    Participant
    Status: Physician
    Posts: 3486
    Joined: 01/21/2016

    Great point!

    I have been harping on this at home for a while. My house was built in 1934. Between property tax, insurance, general maintenance, routine repairs and replacements of HVAC, plumbing, appliances, and one-time incidents that need repair (like the bird that nested in our attic HVAC outflow, caused the pipe to rupture and slow leak on the ceiling below, damaging it requiring replastering and painting, as an example), I would estimate that living in my house costs 4-5% the value of the house, every year. In other words, I repurchase my house every 20 years.

    I am pretty thrifty and do what I can when it makes sense, but I am not going to cut down that 30 foot 25 year old tree wedged between my detached garage and my neighbor’s, as an example. I will power wash my patio in the spring, in part because I cannot find anyone to do it for any price– it might be my next business! So not only am I paying that much to maintain the house, I am paying with my time, probably averaging 3-5 hours per week.

    For those of you who believe home ownership is an “investment”, unless you get lucky and experience 7% year over year growth (real, in excess of mortgage interest), you are almost certainly losing money in your home.

     

    #71713 Reply
    Liked by hatton1, RocDoc, jz, CM, Zaphod
    Avatar jz 
    Participant
    Status: Physician
    Posts: 680
    Joined: 01/09/2016

    Our 40 year old primary residence:   0.04

    Our 20 year old vacation home:  0.037

    Geez.

     

    #71717 Reply
    wideopenspaces wideopenspaces 
    Participant
    Status: Physician
    Posts: 1198
    Joined: 01/12/2016

    Our house was built in 1917! With original wood floors, wood trim/moldings, bookcases . . . It’s in great shape! We’ve been in it 3 years and have not needed to do much to it as it was renovated prior to moving in. We paid for some weeding and a couple of lawn mows this summer, along with quarterly lawn treatment. Insect guy came out once. We did buy solar panels, but that will pay for itself over time so not sure I should include it. So I’d say we paid 1k/500k=0.2%. I’m sure other years will be more expensive but that will be balanced out by years like this where nothing needs to be done.

    #71729 Reply
    Liked by hatton1, Zaphod
    Hank Hank 
    Moderator
    Status: Attorney
    Posts: 1461
    Joined: 03/27/2017

    We own a place built in 1925, a place built in 2004, and a bunch of places built after the Korean War but before the 21st century.

    It’s really easy to compartmentalize things as just another “one time cost”. The reality is, 2% of current value in repair costs per annum is a pretty conservative estimate for how much repairs and home ownership will cost you every year.

    Keep your receipts to offset rental income for tax purposes.  The S&P 500 or a REIT won’t call you at 2 a.m. to demand that you fix an overflowing toilet.

    #71742 Reply
    hatton1 hatton1 
    Participant
    Status: Physician
    Posts: 3120
    Joined: 01/11/2016

    JZ, Vagabond are all correct the maintenance issues never  stop.  My house was built in 1979.  When I first bought the house it became a hobby of sorts to plant new landscaping and remodel one room at a time.  I became so sick of having people in my house that I am now behind on several maintenance issues.  I need to replace several patio doors, get new awnings, and paint the exterior. One piece of advice I would give anyone designing or remodeling a house is not to build in a refrigerator with fancy carpentry.  One day that refrigerator will need to be replaced and you will have to buy another (sub-zero) fancy oddly sized fridge and hire a carpenter to take off the paneling and then replace it.  Stupid!

    #71754 Reply
    q-school q-school 
    Participant
    Status: Physician
    Posts: 2640
    Joined: 05/07/2017

    in one of my first dream homes, we had a handyman basically living there full time.  it was like murphy brown and that elden character.

    it appreciated 100k per year though so I think we probably still came out ahead, and no taxes on it but hard for me to imagine that kind of appreciation thesed days.

     

    #71775 Reply
    Liked by hatton1
    Avatar justlearning 
    Participant
    Status: Other Professional, Spouse
    Posts: 120
    Joined: 08/15/2017

    Great point!

    I have been harping on this at home for a while. My house was built in 1934. Between property tax, insurance, general maintenance, routine repairs and replacements of HVAC, plumbing, appliances, and one-time incidents that need repair (like the bird that nested in our attic HVAC outflow, caused the pipe to rupture and slow leak on the ceiling below, damaging it requiring replastering and painting, as an example), I would estimate that living in my house costs 4-5% the value of the house, every year. In other words, I repurchase my house every 20 years.

    I am pretty thrifty and do what I can (quite a bit for a Jewish guy, in fact ???? ) when it makes sense, but I am not going to cut down that 30 foot 25 year old tree wedged between my detached garage and my neighbor’s, as an example. I will power wash my patio in the spring, in part because I cannot find anyone to do it for any price– it might be my next business! So not only am I paying that much to maintain the house, I am paying with my time, probably averaging 3-5 hours per week.

    For those of you who believe home ownership is an “investment”, unless you get lucky and experience 7% year over year growth (real, in excess of mortgage interest), you are almost certainly losing money in your home.

     

    Click to expand…

    I think home ownership more of a lifestyle than investment

    #71781 Reply
    Donnie Donnie 
    Participant
    Status: Other Professional
    Posts: 770
    Joined: 01/11/2017

    Whether you rent or buy, you are still paying the maintenance costs.  If you buy, maintenance costs are lumpy and somewhat unpredictable.  If you rent, maintenance costs are smoothed out in the form of your monthly rent check.

    2% is probably a realistic estimate on average.  For me, it is never 2%, but either much higher (siding, roof, ac/heat, etc.) or much lower.  This year I doubt we will crack 0.5%.

    #71794 Reply
    Craigy Craigy 
    Participant
    Status: Spouse
    Posts: 2104
    Joined: 09/16/2016

    Seems like once a year there’s a big one, $4k or $5k or so.  This year two big ones, air conditioning and a waste line, so probably more like $10k.  Also once or twice a year small repairs like a water heater ($1,250) or some carpentry/sheetrock work ($100s).  I think we’ve escaped a couple of years with near zero.  Donnie’s probably accurate, avg maybe 2%.

    It’s definitely not free.

    I mow my own lawn, trim trees, don’t really cle  an the gutters, can handle painting and small plumbing.

    LEVEL 1 WCI FORUM MEMBER.

    #71815 Reply
    Liked by Zaphod, hatton1
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6327
    Joined: 01/12/2016

    Whether you rent or buy, you are still paying the maintenance costs.  If you buy, maintenance costs are lumpy and somewhat unpredictable.  If you rent, maintenance costs are smoothed out in the form of your monthly rent check.

    2% is probably a realistic estimate on average.  For me, it is never 2%, but either much higher (siding, roof, ac/heat, etc.) or much lower.  This year I doubt we will crack 0.5%.

    Click to expand…

    You do, but rent is also market based to an extent that maintenance isnt (though it is also). Theres an elasticity there that is fragile. Luckily the incentives for being a landlord allow rent to be pretty good.

    #71830 Reply

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