Buying a Home Soon? Experts Suggest Stashing Away This Much for Repair Costs

While many people dream of becoming homeowners, a home is a big responsibility. In addition to preparing for the costs associated with purchasing a home -- such as a hefty down payment and closing costs -- you should also consider the ongoing expenses you must pay.

Besides your monthly mortgage payment, property taxes, and home insurance costs, you should budget for other expenses related to maintaining your property.

Regular maintenance and repairs are necessary to keep your home in good condition. Before you buy a home, find out how much money you should stash away for repairs and maintenance.

Budget 1% to 2% for repairs and maintenance costs

Many experts suggest setting aside 1% to 2% of the home purchase price annually for ongoing home maintenance and repair needs. Some even suggest saving upwards of 4%. You'll want to set aside money each year to afford to take good care of your home.

If 2% feels like a lot, start with 1%. Saving some money is better than none at all. Let's imagine you want to buy a $275,000 home and plan to start saving for repair and maintenance costs by saving 1% annually. You'd want to set aside $2,750 each year.

Some regular maintenance tasks include gutter cleaning, HVAC system inspections, lawn care, and replacing air filters. Examples of home repairs include plumbing issues, water heater replacement, and HVAC equipment replacement.

Even if you only spend a portion of what you've set aside, you'll be glad to have money available when a more costly expense arises, like a new roof. According to the International Association of Certified Home Inspectors, the average life expectancy for a roof with asphalt shingles is 20 years.

Many homes have asphalt shingle roofs. Replacement costs vary depending on labor, home height and pitch, and square footage. But according to Architectural Digest, most homeowners will pay $11,500 for a 1,500-square-foot roof.

The best strategy is to make saving up for home repair and maintenance costs a habit.

Earn interest while you save for maintenance costs

Whether you're already a homeowner or are planning to buy soon, it's beneficial to stash away money for home repairs and maintenance. Having money in your savings account before paying a repair bill or buying supplies for routine maintenance can give you greater peace of mind and help you stay out of debt.

Where you keep your savings matters. If you keep it in a checking account, you won't earn much (if any) interest. Instead, consider keeping it in an interest-earning bank account so your money can grow over time.

Want to maximize the interest you earn from your home repair savings fund? To reach your savings goals faster, consider the Discover® Online Savings account -- which has an impressive 3.75% APY. Click here to learn more and open an account today.

Earn rewards to boost your savings account balance faster

Looking for a way to earn more money to fund future home repairs? You can earn cash back when using a cash back credit card to pay for everyday purchases. Check out our list of the best cash back credit cards to discover how easy it is to earn cash back rewards.

Cash back apps offer another way to earn rewards when you shop. Tools like this can help you set aside more money to care for your home just by keeping up your usual shopping habits.

Don't ignore the extra costs of owning a home

Are you considering giving up renting to become a homeowner? It may seem appealing not to have to pay high rental fees or deal with a landlord. But you'll be responsible for handling the upkeep of your home and paying for these costs. Do what you can to plan accordingly for all homeownership costs, including future expenses like home repairs and maintenance.