Monthly maintenance reserve for new buildings

How do you see that or how have you regulated it with you?

First of all, one should distinguish between sole ownership (single-family house) and sectional ownership (condominium). In the case of the condo, one should always, even when building new, form a maintenance reserve fund. The amount can be calculated according to various formulas – depending on the age. For new houses, I don’t see the need for an explicit maintenance reserve fund in the first 10 years. Too little breaks down during that time. After that, one can consider systematic buildup. What I find much more important is a fundamental minimum reserve. It doesn’t matter whether it is needed for the new living area (even there, costs of €10,000+ for the new living room can quickly add up), the car, or the house. And this reserve must always be replenished immediately and quickly. How high should it be? It depends on your life.

How high does it have to be? Depends on your life.

We sleep more peacefully when 5-6 installments are in the savings, with 20 or more installments we hardly restrict ourselves anymore, but we always keep an eye on the finances.

What I find much more exciting, though, is when do you use the maintenance reserve?

I would rather save separately for a terrace roof and other planned new acquisitions if we are really talking about a maintenance reserve. If we are talking about an acquisition fund that is supposed to be for house, car,... then you may also take something out of it as long as you leave enough behind. At least that’s my plan, I also find a general fund smarter than an explicit maintenance reserve that just stagnates for 15 years. But of course, that also requires that you can quickly top it up if need be.

We like to keep the oft-mentioned "emergency fund" [Notgroschen] tucked away. I feel comfortable when it’s a five-figure amount. It’s in a savings account or something similar, something accessible. We would use it to cover larger, unplanned expenses like broken household appliances, major car repairs, or something like that.

We have allocated €250 for the house reserve. However, in the first few years, I would partly use the "emergency fund" to replenish it if necessary. But I would also start putting something aside within the first 5 years, despite the warranty, because – as fate would have it – something unfortunate might happen with the property exactly after 5 1/2 years for which you would be responsible. Of course, that should not happen, but it can. And it also makes sense, because if you’re unlucky, after 10–15 years you might run into bigger problems again. A new heating system or something like that might be necessary – and then you can’t get away with just a four-figure amount quickly. Therefore, I think with €250 per year – with the option to increase it over time – you’re pretty well positioned.

For larger, unforeseen damages that can be insured, I would always prefer insurance. So, we have generously equipped ourselves with a homeowners insurance policy. Simply because with real estate, damages can occur where the costs are hard to estimate. It makes for better peace of mind.

Speaking of 5 years warranty and only saving up afterwards. Our facade had to be completely replastered again during the warranty period. The cost was probably easily in the five-digit range. The plastering company was already bankrupt, so everything fell on the general contractor and shortly afterwards the general contractor was dragged into insolvency.