Overview

Home maintenance costs are real and often underestimated. The 1% rule (budget 1% of home value annually) is a starting point, but older homes and certain regions require more. Understanding what maintenance costs look like over 5-10 years helps you model true home affordability beyond the mortgage payment.

💡Key Point

Home maintenance costs are real and often underestimated. The 1% rule (budget 1% of home value annually) is a starting point, but older homes and certain regions require more. Understanding what maintenance costs look like over 5-10 years helps you model true home affordability beyond the mortgage payment.

What You Need to Know

  • 1% rule: budget 1% of home value annually for maintenance -- ,000/year on K home
  • Older homes (pre-1990) often require 1.5-2% annually due to aging systems and materials
  • Major systems lifespan: roof 20-25 years, HVAC 15-20 years, water heater 10-12 years, appliances 8-15 years
  • First year of ownership often has ,000-,000 in initial setup costs beyond regular maintenance
  • Create a home maintenance sinking fund by saving -/month depending on home age and value

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