Do you want to save some extra cash? Here are our tips on how to budget for maintenance…
When it comes to purchasing a property, be it to own or as a rental investment, it’s vital to budget for maintenance. And this rule applies even more to luxury properties in prime parts of Central London which tend to generally require a lot of upkeep. After all, the last thing you want is to be caught unprepared by a massive bill for a very expensive repair. So how can you plan for this? Here are a few tips:
Save one percent of the cost of your property
It’s a general rule that roughly one percent of your property’s price should be put aside for ongoing maintenance. This is linked to the fact that depending on the local area and how expensive it is, the price of materials and suppliers will correlate with the underlying price of your home and repair costs. That’s not to say you’ll spend one percent of your property’s cost every year, but at least you’ll have backup as and when you need it. We all know there are lots of things that can need replacing, such as roofs, boilers and electrics.
The age of the property
This will pay a role when it comes to maintenance costs because new builds will need less maintenance than older homes – particularly grade-listed buildings you can find in Central London hotspots. It’s the price you pay for a stunning Georgian terrace! Ultimately, the older the property is the greater likelihood that internal structures can be affected. Of course it’s a generalisation to assume that houses are automatically shoddy if they’re old, as it depends who has looked after them and how much they’ve cared for the property.
The recent floods have flagged up the importance of choosing carefully when buying and investing in properties. After all, no one’s going to be buying at the bottom of a hill by a river anytime soon! However, in Central London the built-up area means that dodgy weather and flooding are unlikely to have an impact. Other factors may affect your property though – such as the close proximity of houses that are having works done for example. There has, after all, been a lot of concern about basement extensions in prime parts of London recently.
The Square Foot Rule
Another rule says you should budget a certain amount per square foot for maintenance and repair costs. This says that the more square feet you’re managing; the more you’ll have to spend. However, this doesn’t account for labour and material costs in your area as it really depends on where you live as to how expensive contractors are.
We hope these tips have been useful. If you’re looking for property maintenance in London make sure you contact our friendly estate agents for advice.