How much should i put away?

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Dylexsmommy
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Unread post Mon Oct 28, 2019 10:31 pm

Ok single mom, looking to buy a house in the 130-150 range. Its below my "how much house can you afford" quotes by about 75k so i should be fine with the mortgage.

But here's my question. I'm looking at older homes with no roof, foundation, electrical, plumbing damage or repairs needed upon buying.
But how much $$ should i have put away for incidental repairs?

Is 10k enough to have saved just for those type of repairs? 20k? 30k?

Also. Are there any good warrenty companies that i can pay monthly too like insurance thay will cover costs like needing a new roof or something?
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Linda_Runs
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Unread post Tue Oct 29, 2019 9:05 am

I am certainly no contractor, but with a highly deploying Army husband, I have had more than my share of exposure with home things while he was away.

The general rule for repairs and maintenance that I was taught was one percent of your homes value per year, so $1,400 per year. I would think $10K is enough to pay for anything serious that comes up, but I would also keep an emergency savings account, not just for repairs, but anything that can come up without warning in life.

For home warranty companies, I have not heard of them beyond the standard seven year new house warranties offered by the builder.
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Dylexsmommy
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Unread post Tue Oct 29, 2019 9:10 am

Linda_Runs wrote:
Tue Oct 29, 2019 9:05 am
I am certainly no contractor, but with a highly deploying Army husband, I have had more than my share of exposure with home things while he was away.

The general rule for repairs and maintenance that I was taught was one percent of your homes value per year, so $1,400 per year. I would think $10K is enough to pay for anything serious that comes up, but I would also keep an emergency savings account, not just for repairs, but anything that can come up without warning in life.

For home warranty companies, I have not heard of them beyond the standard seven year new house warranties offered by the builder.
That seems totally doable.
We woke up to this
20191022_053533.jpg
about a week ago and its since been fixed but i see things like this and it makes me scared to own.
But i do have $ saved and i want to make sure i can handle all the required repair costs before i buy.
I'd hate to buy a house then 3 weeks later i need to replace something like a water heater and don't have the $ to do it.
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Linda_Runs
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Unread post Tue Oct 29, 2019 9:12 am

Dylexsmommy wrote:
Tue Oct 29, 2019 9:10 am
Linda_Runs wrote:
Tue Oct 29, 2019 9:05 am
I am certainly no contractor, but with a highly deploying Army husband, I have had more than my share of exposure with home things while he was away.

The general rule for repairs and maintenance that I was taught was one percent of your homes value per year, so $1,400 per year. I would think $10K is enough to pay for anything serious that comes up, but I would also keep an emergency savings account, not just for repairs, but anything that can come up without warning in life.

For home warranty companies, I have not heard of them beyond the standard seven year new house warranties offered by the builder.
That seems totally doable.
We woke up to this 20191022_053533.jpg about a week ago and its since been fixed but i see things like this and it makes me scared to own.
But i do have $ saved and i want to make sure i can handle all the required repair costs before i buy.
I'd hate to buy a house then 3 weeks later i need to replace something like a water heater and don't have the $ to do it.
What is that?
caustib
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Unread post Tue Oct 29, 2019 9:25 am

Off the top of my head, the most expensive repairs not covered by an insurance policy would be a new roof or a water main burst in your yard. Both cost around $10k here. We just did a new AC for $4k, a new furnace is about the same. I can't imagine all of those things would go wrong at once, so I would think $10k would be good.

I've not heard great things about home warranties, but sometimes a seller will buy one for you as an incentive. Get your realtor to try to negotiate that in to the contract. If it's free for you, no harm no foul.
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Dylexsmommy
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Unread post Tue Oct 29, 2019 11:44 am

Linda_Runs wrote:
Tue Oct 29, 2019 9:12 am
Dylexsmommy wrote:
Tue Oct 29, 2019 9:10 am
Linda_Runs wrote:
Tue Oct 29, 2019 9:05 am
I am certainly no contractor, but with a highly deploying Army husband, I have had more than my share of exposure with home things while he was away.

The general rule for repairs and maintenance that I was taught was one percent of your homes value per year, so $1,400 per year. I would think $10K is enough to pay for anything serious that comes up, but I would also keep an emergency savings account, not just for repairs, but anything that can come up without warning in life.

For home warranty companies, I have not heard of them beyond the standard seven year new house warranties offered by the builder.
That seems totally doable.
We woke up to this 20191022_053533.jpg about a week ago and its since been fixed but i see things like this and it makes me scared to own.
But i do have $ saved and i want to make sure i can handle all the required repair costs before i buy.
I'd hate to buy a house then 3 weeks later i need to replace something like a water heater and don't have the $ to do it.
What is that?
The ceiling above the stairs. We had a leak coming from the attic and it finally busted through.
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