Updated almost 7 years ago on . Most recent reply
Using the 50% rule. How often is this an overestimation? Under!
In the Ultimate Beginner’s Guide, they talk about the 50% rule. Half of all expenses come from mortgage and you should budget the same amount for repairs, maintenance, taxes, etc.
I have not bought my first property yet, so for those of you that have, how accurate is this rule of thumb? What do you do if it’s an overestimation? Pocket the money? Save it for a big repair bill? Interested to hear your experiences.
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Joe Villeneuve
#5 All Forums Contributor
Pro Member
#5 All Forums Contributor
- Plymouth, MI
That "Rule (?)", like all the Rules that are named after "%'s", is right about 50% of the time. The other 50%, they are inaccurate.