Owning a Lake Havasu home offers many benefits. Tax deductions. An investment opportunity through equity building. Creating a space for your family to live and grow. However, homeownership comes with ongoing expenses. It doesn't stop at the downpayment and closing costs. And it's more than just your monthly mortgage and insurance payments or annual taxes. Maintaining your home costs money. And, sometimes, the need arises to dole out cash to take care of a problem. That's why you need to set up a home repair emergency fund as soon as possible.
How Much of a Home Repair Emergency Fund Do You Need?
Some financial experts preach the 1% rule of thumb when it comes to a home repair emergency fund. That means you should ideally save 1% of the purchase price of your Havasu home each year you own it to cover emergency repairs. Let's say you bought your house for $250,000.That translates to $2500 contributed each year into your home repair emergency fund. That's roughly $210 per month. However, as houses age, various systems begin to break down. Repairs become more regular. If your Lake Havasu home was built more than 10 years ago, you might want to increase this annual contribution to somewhere between 2% and 4%.
Regular Maintenance and Inspections
How can you reduce the chances of needing major repairs on your Havasu home? By conducting regular maintenance and having a professional home inspection performed every five to ten years. What areas should you focus on? Your roof, windows, and HVAC system tend to wear down the fastest or cost the most to replace. A good roof should last 20 to 25 years. Windows take about $350 each to replace. And a new air conditioning unit costs about $5000 to install. But regular maintenance of these areas helps identify smaller issues before they become bigger problems.
When it comes to electrical and plumbing issues, it's usually best to leave it to the professionals to handle. Unless you're a certified plumber or electrician, you could end up spending more money to fix mistakes made in the DIY process than if you had simply hired a professional to begin with. There are also safety hazards to consider.
It's always smart to create a budget to help manage your finances. This is also true when it comes to your home repair emergency fund. Start it up as soon as possible. And continue contributing to it monthly or annually to ensure that you have the money necessary to take care of any catastrophes you may encounter.