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Overall maintenance costs/budget

Discussion in 'Property Management' started by Alex2003, 1st Jan, 2016.

  1. Alex2003

    Alex2003 Member

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    I have had a forum search for this topic, but was unable to find one so apologies if it has recently been addressed.

    Our first 2016 IP purchase is likely to be a 2-3 bedroom house just outside a capital city, but my question is what are the 'average' maintenance costs budgeted. This is outside the usual council, water, insurance rates etc. I understand there are a good chance you could be unlucky enough to have your aircon go belly up within 3 days of settlement but what do you generally keep aside as a cash sum or save a fortnight towards a 'maintenance budget'?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    2.5% of construction costs. Some may say that this is high however some years you will spend 1% but others you will spend 5% (eg hws, air conditioner & repainting ).
     
  3. wylie

    wylie Moderator Staff Member

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    We never allowed anything for maintenance and just crossed our fingers for many years (and I am not kidding). When a problem arose we either fixed it ourselves, put the fix on a credit card or borrowed from my parents and paid interest until we could repay.
     
  4. Alex2003

    Alex2003 Member

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    Construction cost same as purchase cost?

    Yup I can see why you would do that when first start out! :)
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Not unless there's zero land component.
     
  6. bob shovel

    bob shovel Well-Known Member

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    I'm like @wylie deal with it when it arises, some jobs you can diy, get a mate for cash or get the pm to handle.
    But if your after a number id say $2000/yr is more than enough
     
    Last edited: 3rd Jan, 2016
  7. dabbler

    dabbler Well-Known Member

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    1-2k, but can be more, if you have a place that offers everything, gas heating, A/C's, electric this and that, all appliances like dishwasher etc, it can easily grow, 1k does not get much done anymore.