Sunday, 18 March 2007

How Much do you need to put aside Each Year to Replace Applicances?

Although there are plenty of figures around to calculate depreciation rates for appliances regarding tax deductions for rental property investments, when it comes to working out how much you actually need to budget for replacement of common household appliances the figures can be harder to work out. has published some data by Bank of America Home Equity and conducted by the National Association of Home Builders that gives real world estimates of the life expectancy of a variety of home components. To save you flicking through the 13 pictures on the CNN site, here is a summary of the life expectancy of common household appliances:

Applicance Expected Life
Gas Range 15+ years
Refrigerator 13 years
Dishwasher 9 years
Cabinets 50 years
Concrete &
Masonary 100+ years
Counter tops 20+ years*
Wood decks 20+ years
Electricals 10+ years*
Plumbing 15 to 50 years
Flooring 25 to 100 years*
Roofing 20 to 50 years*
Siding 20 to 50 years*
Windows 15 to 30 years*

* depends on quality/material
If you divide the purchase cost by the life expectancy that should give you a guide as to how much "depreciation" to save up each towards the items eventual replacement. Scaling up the amount each year to allow for inflation would also be a wise move.

Enough Wealth

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