A first-time homebuyer’s guide to maintenance and repairs

Homes are a major investment, and like any asset, they require regular upkeep in order to preserve their value.

New homeowners can easily get blindsided by just how expensive it is to maintain a property, and you can find yourself in a true financial bind when an expensive repair is needed for the first time.

Thankfully, there are some general guidelines you can follow to circumvent this issue.

Firstly, set aside 1-4% of your home's value annually for routine maintenance. This can change depending on what you can afford and the size of your property, but it remains essential to budget for your maintenance needs.

There are a lot of costs to consider when you first buy your home, so it can be tempting to delay budgeting for maintenance that you will likely only come across later. However, creating this budget early will ensure that you don’t run into financial problems. 

Alongside your routine maintenance budget, it’s a good idea to have a separate savings fund for unexpected repairs and replacements. Ideally, this fund should have enough in it to cover a major repair like replacing a geyser.

Whether it’s a minor issue like a broken curtain rail or door handle or more serious like the geyser, you can be sure that something will break, even if you’ve bought a new build, so saving from day one is paramount, even if it means delaying some renovations or new furniture purchases.

Lastly, follow the rule of thumb that you can expect to pay between 1-4% of your home’s value on wear and tear. Roofs, appliances, and mechanical systems don’t stay perfect forever, and these are where the big surprise costs will come in if you don’t prepare for them. 

Following these guidelines will save you from substantial stress. Additionally, you’ll ensure that your property value remains steady with the market. 

You don’t need to worry too much, as there are also ways to help you minimise repair costs: 

• Draw up a regular maintenance schedule
• Don't skip minor repairs
• Avoid quick fixes
• Make sure you have adequate insurance coverage
• Don't tap into your home equity to cover repair costs

By budgeting properly for maintenance and repairs from the beginning, you can ensure that you’re financially prepared for every stage of homeownership.