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SmarterShelter OP t1_iybjre1 wrote

Reply to comment by PurpleVermont in If Buying a House Is Cheaper Than Paying Rent...? by SmarterShelter

How much extra would you budget for general expenses per month? I should figure that out.

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fawningandconning t1_iybk9tv wrote

Most "rules" suggest you should expect to spend 1-4% of the home's value a year in upkeep costs. So on a 200K house, that would be $2K a year. That doesn't mean you shouldn't have a larger reserve, especially for a fixer upper. Large repairs like a boiler, HVAC, roof, foundation, etc. can set you back thousands or tens of thousands.

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SmarterShelter OP t1_iybkkjv wrote

That's super helpful - thank you! I'll make a spreadsheet...

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Werewolfdad t1_iybk31r wrote

1% of home price per year, except it all happens in one year and costs at least $10k each time it does (not really, but close)

(maybe 2-3% if its an older home)

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SmarterShelter OP t1_iybkl90 wrote

That's super helpful - thank you! I'll make a spreadsheet...

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cookiemountain18 t1_iybkntw wrote

It’s not just about monthly expenses, It’s high cost repairs that pop up every couple years.

Your rent is probably covering these things but in a house you have to pay for your electricity/heating/gas, house insurance, and property taxes.

I didn’t buy a fixer upper, but the handful of projects I’ve done over the last couple years require tools which are expensive. Which I assume, if you’re renting, do not have.

It’s better than renting but it’s not cheaper. You also can’t just walk away like you could with a rental.

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SmarterShelter OP t1_iybl42b wrote

That's a good point. I think I'm going to make a spreadsheet and I'll add repairs in against my current rent.

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