Property maintenance costs 2% of property value?

[Cando6]

I remember reading about the principle of budgeting 2% of property value per year as a yardstick for maintenance costs.

Have googled it and there’s plenty of debate but generally agreed that’s a reasonable figure. Some opinions say 1%. Accounting for small regular costs as well as big ones such as kitchens and bathrooms. And that kitchens get replaced every 20 years and bathrooms 30 ish.

Am interested as my property is 24 years old and bathrooms and kitchen are very tired (ex rental).Boight 3 years ago and I plan to be here for another 7 years so will be 10 in total Property worth about £550k. So using the 1- 2% thing at £5.5 - 11k per year I should be budgeting around £55-100k over the 10 years to keep the place updated. I’ve probably spent about £7k fixing stuff already.

Im not silly enough to be dictated to by the idea but am dithering about whether to just accept I will probably have to update major things before I move on rather than just live with them. Is a frumpy 24 year old bathroom that unusual? This place feels so modern compared to some places I’ve lived!

Would you say you spend 1-2% annually over the life of your property ownership?

And yes the % will obviously be very much affected by region. A £20k kitchen will cost the same in a 550k tiny Surrey house as a tiny £200k house in a cheap area.

That's why it should be considered as a % of the rebuild cost not a % of the market value.

I would say I do spend an average of 1% - 2% of my property value on Maintenance each year.

Obviously some years more and some less. Last year I spent £5k on Painting outside and two rooms inside, £400 on plumbing (shower issues), £300 on electrics (changing fire alarms and light bulbs), £500 on garden maintenance (hedges, patio repairs, shed repainting).

This year has been much higher because of a serious issue with my central heating on top of painting work and a roof issue.

The house was only renovated 8 years ago so I consider the costs quite high, but of course they would be lower if I could do more of the maintenance myself.

Yes I would love to be more ‘handy’. I’m happily single and the only time I’m envious of anyone with a partner is when my friends and family have one that can do big complex home renovations.
I have a list of jobs in my head all the time. Thought buying a modern house would mean lower maintenance but this 24 yr old estate house really wasn’t built to last. I read somewhere that new builds only have a shelf life of 50 years which is a bit depressing!
Already had to rebuild outside structures at £6k. Paint the rendering £2k.
When a neighbour’s house goes on Rightmove I can see most still have the original kitchen and bathrooms and that’s what I’m dithering about. The cabinet edges in the kitchen are blown. Floor full of cracked tiles. Grout cracking and discoloured in the bathrooms. Feels relentless!

I think it depends more on what needs doing and your inclination to do it, or pay for it to be done that matters.

But I'm surprised your kitchens and bathrooms are looking shabby, the quality must be very poor.

Our bathroom is likely 40 years old and while it is obviously dated, it's fairly neutral and the quality is good but not high end so it doesn’t need replacing.

Our kitchen is newer but still in 'as new' condition but is a high street brand so again not high end. Doesn’t feel like it will fall apart any time soon.

You probably need to decide whether to replace the kitchen and bathroom soon and enjoy nice ones for the next few years or hang on and sell as a doer upper when its time to move.

You also need to factor in your enjoyment of living there. If the kitchen/bathroom doesn't bother you, don't change it. If you would enjoy a new one, do.
This is your home as much as an investment, enjoy it and if you come to sell it, a newer bathroom/kitchen would make it more desirable even if it doesn't add tons to the asking price.
Edited to add: it helps to keep both classic and fairly neutral though, no avocado suites😂

We have a savings account that we put £200pm in and it is ringfenced for the house. It works out as 0.5% of the house value. We can't really afford more than that.

We have a Victorian 3 storey semi and our annual maintenance costs nowhere near 2% of our property value.

Our house is older, and broadly stone built. So it's rebuild costs are probably double market value. 2% a year for maintenance seems an extraordinary amount. 10k a year on a 500k property? Boiler service, someone to check over roof and gutters is annual, so assume at worst 1k or so on just routine crap. If kitchen, bathroom, windows, external painting, redecorating rooms, new consumer unit, renew insulation - it sounds like a long list, but redoing a bedroom say 1k, bathrooms 15k, kitchen 20k, render 8k, consumer unit 2k, boiler & rads 4k, windows 1k each, so eg 15k... say 70k.

Thanks all. I think I’m influenced a bit by my immediate neighbour who seems to have trades around constantly.

Feel I should investing more into this place to keep it maintained. Eg She has just had her entire staircase (3 storey townhouse) overhauled to stop squeaks. Mine squeaks horrendously! Makes the house feel unstable when it screeches and screams on every step.

I was in a solid 1930s house before so this one feels made of cardboard and plywood. Bit unnerving when I put up a shelf and the drill flies right through the wall!

Current dilemma partly because my son has managed to smash the sink in the en suite and it’s an obsolete shape which is set into a fully tiled unit. The shower in the en suite has horribly discoloured grout and I’ve just spent a weekend fixing the leaking doors. They are 4mm glass which is the cheapest spec and do feel flimsy and unstable. I don’t think either of the bathrooms will last 40 years. Maybe I should just spend my 2% on the en-suite this year :(