, a financial planning firm that works with people in their 30s and 40s with families.
The rule of thumb about how much to save for unexpected repairs varies based on the condition of the home and an owner’s financial circumstances. Jason Blumstein, CEO of, said he typically tells owners to save 1% to 4% of a home’s value each year for housing expenses. L.J. Jones, a financial planner and founder of Developing Financial, put it at $1 for every square foot per year.
In Westchester County, New York, Sarah H. had bought a house for $670,000 in mid-2020, when pandemic restrictions only allowed her and her fiancé 20 minutes to view the property and prohibited them from bringing anyone with them for a second opinion. “The sellers weren't the easiest people to work with,” she said. Their inspector went in to see the house separately, finding some asbestos and some old termite damage.
“I budgeted well for a home when I first started looking. I put in over 20 offers, and by the time I closed, I was at the very top of my budget. I didn’t expect the costs of groceries/cost of living in general to shoot up as much as it did, and had very little cash left over after closing costs.” —Texas
Garland said they are dealing with repairs when they can afford to. The plumbing and tub have been fixed, the electrical wiring was updated, and they’ve put in a support for the floor; it has all cost $50,000 so far. Fixing the foundation will be another $40,000.
It’s the mortgage scam- bubble all over again. 🙄