Forumula 2 Calculate Maintenance

[brettb]

Hi,

How can I budget for the potential ongoing maintenance costs associated to an IP? Is it realistic to estimate maintence costs as a % of the purchase price or rent? What do you find effective?

Thanks,
Brett

 

[cgw]

Hi Brett,

Yes, I have been thinking of this too lately. It is costing me heaps for maintenance, that I did not really account for. The labour costs are heaps, eg to install a $30.00 toilet part, they charged me $70.00.
I think cos of the high costs of tradies, all maintenance guys are now pushing up their prices as well.

 

[redwing]

I use 2% of the loan for Miscellaneous costs as a rough figure, but I always like to err on the side of caution though

 

[Twitch]

The minor maintenance stuff has cost me <0.5% a year. That doesn't allow for anything major like carpet replacement, fence replacement, full repaint etc

 

[granev]

it also tends to vary greatly depending on what sort of property - the older it is the more things seem to go wrong.
usually very little to spend on a new property

 

[BoatBoy]

Hi Brett,

Yes, I have been thinking of this too lately. It is costing me heaps for maintenance, that I did not really account for. The labour costs are heaps, eg to install a $30.00 toilet part, they charged me $70.00.
I think cos of the high costs of tradies, all maintenance guys are now pushing up their prices as well.

Sometimes it gets cheaper to just replace the whole thing, and no more problems.

We had two call outs for the same toilet in a 3 mth period at $90 a go for a $2-00 part.

Next time it's gone.

Dave

 

[Alanna]

Maintenance costs can also depend largely on the market, costs here at the moment are huge because tradies and handymen can pick and choose their jobs.

Scheduled maintenance can be planned for the year in advance, with costs. We have booked in some major jobs with tradies over the course of the next 8 months for when they are not so busy and the weather is a bit better.

Having said that, I was not overly happy with the $160 plumbing bill for 15 minutes work to replace a set of laundry taps either!! We are finding it now more cost effective to do full maintenance on a house as small jobs come up (eg a leaking tap, check every tap while you are there).

 

[Aimjoy]

Hi,

How can I budget for the potential ongoing maintenance costs associated to an IP? Is it realistic to estimate maintence costs as a % of the purchase price or rent? What do you find effective?

Thanks,
Brett

Brett,

Only one equation with too many variables and too many unknowns. We allow about $1,000 per property per year as a rough guide.

Sometimes a HWS system needs replacing which will cost $1200 but then one of the other IPs will need nothing doing all year - so it seems to even out amongst them.

Aimy