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. CNNmoney.com 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