If you buy a new home, there is more to budget for than just mortgage and down payment. As stated in the July 2015 edition of The Epoch Times, 75% of homebuyers will face a costly emergency repair within the first 12 months of moving into their new home. Most homebuyers reported that they spend more time and money on remodel projects and unexpected damages than they initially anticipated.
Blocked toilets and pipes, a clogged train, and a broken heating or a/c system belong to the most frequent repairs within the first 12 months.
It is recommended to homebuyers to budget 1% of their home purchase price for repairs so that there is no rude awakening after close of escrow from the dream of owning a home.
