Annual Maintenance Costs

[Mike From NIU]

Originally Posted by FCNova

Things like that shouldn't be fully counted in one year as annual maintenance though. Hot water heaters last a really long time, just like roofs, HVAC systems, appliances(hopefully). When people replace that stuff and then fully count it in their estimate it's not really an accurate estimate. Not saying you are, but $1,000 for a hot water heater that lasts 20 years isn't really a big annual maintenance expense. I guess what I'm saying is the proactive guy who replaces it at 20 years, vs the guy who replaces it when it breaks at 24 years, don't really have significantly different annual maintenance costs re: hot water heaters

It's not so much that any one of these items should be counted in one year as annual maintenance, as it is that there are enough of them that, over the long run, you incur at least one of them every few years.

Hot water heaters last 10-15 years on average.
Roofs around 20 years
HVAC- 15-20 years
Bathrooms- 15 years or so (may have 2-3 of them)
Kitchens- 20 years or so.
Carpets- 5-10 years
Decks (replacing)- 20 years
Decks (refinishing)- 10 years
Painting- exterior and interior
Windows- 20 years
Exterior Doors- 20 years
Wood floor refinishing- 5-10 years
Patios (varies)
Landscaping (varies)

Some of these are a matter of personal preference (ie, how long between updating bathrooms as long as it is functional), and some of them may not be applicable to a particular house. However, just in a few minutes, I came up with 14 different items that have a potentially substantial cost. It's not unreasonable to budget so that you could complete one of these each year in addition to regular maintenance costs (yard work, cleaning, minor repairs). Also, while water heater replacement may only cost $1000-$1500, an updated kitchen can easily cost $20,000.

There are issues with the 1% rule (two low for SFHs selling for $250-$300k; too high for a $1 million high-rise condo), but I would argue that in Northern Virginia, one should try to budget at least $2-$3k for major system and structural repairs/replacements and another grand or two for small maintenance and repair. If you can afford to do more, great. If this is a stretch, you should definitely prioritize saving for necessary maintenance over cosmetic improvements.

[FCNova]

Originally Posted by Mike From NIU

Also, while water heater replacement may only cost $1000-$1500, an updated kitchen can easily cost $20,000.

For the most part I agree w your post. But a 20k kitchen job isn't maintenance. Replacing a faucet or appliance that doesn't work counts, gutting everything so you can have granite counters and nicer cabinets and flooring is just a personal decision.