RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

How Much Should New Homeowners Set Aside for Repairs?

May 5, 2016 12:48 am

Owning a home comes with its fair share of expenses, including mortgage and insurance payments and maintenance costs, but how much can a new homeowner reasonably expect to spend on unexpected repairs?

"My recommendation for homeowners is to take a few simple precautions before moving into their home," says Marianne Cusato, HomeAdvisor.com. "Complete a sewer inspection, check that the insurance policy covers water damage, and set money aside for home emergency projects. Homeowners should plan on spending 1 percent of their home's purchase price on repairs and emergencies each year."

According to HomeAdvisor.com data, more than half of homeowners encountered unexpected home projects within the first year of owning a home. More than half also spent more time on projects than originally anticipated, and less than half spent more money than anticipated.

The most frequently cited emergency projects include blocked toilets and pipes, a clogged drain, a broken heating or cooling system and water leaks. These unexpected repairs can cost homeowners anywhere from $199 to $2,068.

In the first year of homeownership, most new homeowners tend to focus on improvements that increase curb appeal, such as installing landscaping, a sprinkler system, wood fence or deck. According to HomeAdvisor.com, the average cost of these outdoor projects is $12,850.

Source: HomeAdvisor.com

Published with permission from RISMedia.


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Report: Retirees Happy "Just Getting By"

May 4, 2016 2:48 am

Despite economic progress, many retirees are still feeling the aftershocks of the recession—but that hasn’t dampened their spirits.

“Many American retirees are still recovering from the Great Recession while managing their households with modest retirement incomes,” explains Catherine Collinson, president of the Transamerica Center for Retirement Studies® (TCRS), which recently released a “State of Retirement” compendium. “The good news is that most retirees are enjoying life, but the concerning news is that many may be ill-equipped to deal with a financial shock, such as the possible need for long-term care.

“As a society, we frequently speak of the need for workers to save and prepare for retirement,” Collinson continues. “Unfortunately, the conversation often ends once people stop working and retire, which is when it becomes even more critical for them to have a financial plan that can last their lifetimes.”

Over one-third of retirees included in the TCRS compendium have only “somewhat” recovered from the recession—a finding reflected in the “just getting by” mentality prevalent in the report. Other financial priorities cited in the compendium include paying off a mortgage, saving for retirement and paying off credit card debt.

Retirees today are living on a modest income: a median of $32,000, according to the TCRS compendium. Social Security is the top source of retirement income, followed by savings and investments, company-funded pension plans, and 401(k)s, 403(b)s and IRAs. Most retirees began collecting Social Security benefits at 62 years old.

Still, current retirees expect a long retirement, filled with meaningful activities outside of employment. These include spending time with family and friends, pursuing hobbies, traveling, volunteering and caring for grandchildren.

Overall, the vast majority of retirees included in the compendium are “generally happy,” “enjoying life,” and “have a strong sense of purpose.”

Source: Transamerica Center for Retirement Studies

Published with permission from RISMedia.


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