Wouldn’t you be all glad if your household appliances could wear a cloth of immortality and stay working efficiently for years until you turn one day with a pitiable look and give them away because you felt they’ve worked so hard for you?
Long gone are those days if there ever was a time like that; now every morning you have to wake up to the disturbing and annoying coughs and sputters of your 3 year-old dishwasher. Just 3 years by, and it’s developed a fault. In the last month that just strolled by, you forked out a chunk of your savings replacing one of your appliances. Now you’re left staring at the looming death of another.
What are you going to do now?
Every appliance you own in your home has a life expectancy. Of course you already know that.
But I bet you don’t know how long your appliances should live for before they bite the dust.
You will find out in no time with the below table and reading the article; plus, I’ll give you the symptoms of some failing plumbing equipments and appliances, what to do about it, their annual depreciation costs and how you can sell it off and make a few profits off of them.
LIST OF HOME APPLIANCES, THEIR USEFUL LIFE AND ANNUAL DEPRECIATION
note: the home appliance section will be linked to specific products on amazon; these are recommendations made based on preference, none of these products have been reviewed personally by any of our members although, we are trusting of the products selections recommended.
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|Lifespan / Useful Life (Years)||Annual Depreciation Rate
(Straight line method)
|Electric Water Heater||11||9.1%|
|Gas Water Heater||10||10%|
|Cast Iron Pipes||75||1.33%|
|Air conditioner -window, room||10||10%|
|Refrigerator – standard||15||6.7%|
|Vacuum Cleaner- office||6||16.7%|
|Soap dispenser machines||20||5%|
|Tumble Dryers (Standalone)||12||8.33%|
|Carpet extractor (Truck or van mounted)||10||10%|
|Filters (including carbon and sand)||10||10%|
|Stove or Ranges (electric)||17||5.9%|
|Stove or Rangers (gas)||19||5.3%|
|Hair dryer -electric||10||10%|
|Copper -kitchen equipment||20||5%|
|Stainless steel -kitchen equipment||20||5%|
|Cast iron -equipment||20||5%|
|Flat or built-up (roofing)||20||5%|
LIFE EXPECTANCY OF PLUMBING EQUIPMENT AND APPLIANCES IN YOUR HOME
“Life expectancy?” That sounds like some technical crap.
Well, not really. Unless you don’t have a streak of nerdy-ness in you, you could call that word garbage as far as you’re concerned.
Your appliances, fixtures and plumbing system can only function as much as they can keep running and working for you, until they get to the point where they start coughing out symptoms yelling, “I-need-to-be-replaced-or-repaired”.
At this stage they have worked to their fullest and can no longer do anymore tasks.
In few words, life expectancy of any appliance or plumbing system: is the expected length of time an appliance or plumbing material should last before they are hauled out, replaced or repaired.
Nearly all appliances in your home have an expected time to last until they breathe their last. Kitchen countertops, toilets, walls, etc., last a lifetime. However, appliances like your copper pipes, dishwashers, refrigerators, etc., only work for a few years before they meet a sticky end.
Some popular home appliances and tools, including their life expectancy/lifespan, and failing symptoms have been provided below.
If you are planning to put your home in the market and wondering how to recoup cost on some your appliances, don’t sweat, just stay on this page.
Appliance Lifespans and Their Depreciation Costs
Below are common household appliances you use at home, their lifespans, and dying symptoms and annual depreciation costs.
Warm baths are soo relaxing, especially during cold periods. And what else can you rely on that your trusted home water heater.
The average lifespan of your water heater varies on the type you have installed in your home.
There are generally two types of water heater; Tank and tankless.
If you love siding with the crowd, chances are you have a water heater that comes carrying a tank with a storage strength that’s between 30-80 gallons.
Electric-powered water heaters with tanks have a life expentancy of about 11 years. Gas powered ones one year less at 10.
Tankless water heaters however have longer lifespans. Since they provided water on demand without warming up the water for you and have it stored in a tank, they last really long. They have a 20-year lifespan, just about same as a solar-powered water heater.
Average price of a water heater
The average cost for an electric water heater is stated to be around $650 dollars. While a gas water heater, $850.
If you are looking for a cheap, you may get an electric water heater off the bat for around $200 while a gas water heater around $350. Usually, these ones won’t last beyond a 2-year period.
Tankless water heaters cost more bread than their counterparts. Their prices sink as far as $1000 on the average.
Signs of a malfunctioning unit
Over the years, your water heater may experience wear and tear. This could be due to overuse or lack of maintenance. Some of the signs to look out for are mentioned below.
If it’s an electric water heater:
- It makes rumbling noises when turned on
- Water temperature from the tank fluctuates
- It doesn’t heat up your water at all or water is lukewarm.
If it’s a gas electic water heater:
- A failing gas burner
- Slow recovery due to clogged vents
- A leaking pressure relief valve
If it’s a tankless heater:
- Mineral buildup are common causes
- System overload
- Blocked exhaust chambers and failed ignition
When Should You Have Your Water Heater Replaced?
Water heaters do a tireless job, often in a spin, of getting you steady hot water on demand. With time, they will finally take a knock. And these awful, whiplashing can happen when you least expect it. It is advisable you replace them two years prior to their lifespan. For electric and gas water heater have them replaced during their 7th or 8th year on the job. For tankless water heater around their 7-year mark is okay.
Discard or Resell?
Since your water heaters are nearing the end of their lifespan, before they take a pretty good beat or their failing signs kick in, you can sell them off at an okay price. When you do this, you are spreading the cost of the water heater over the number of years they should last until their work efficiency decline. This in layman’s term is called depreciation.
DEPRECIATION: PROFIT OR LOSS (MUST READ)
Depreciation is an accounting concept which spreads the cost of a fixed asset over the term of the assets useful life or lifespan in this case.
To calculate the depreciation of your water heater to be able to estimate how much you can resell them, we are going to use the Straight line method
The prime cost method/ straight line method assumes that the value of a depreciating asset decreases uniformly over its effective life. It spreads the cost of your appliances over their lifespan, equally.
Straight line method is: cost of appliance/life span of equipment
We will use the average price of the tankless water heater which is around $1,000.
Depreciation cost using the straight line method is $1,000/20years. That’s $50 per year over the next 20 years.
Assuming you bought a tankless heater in Jan 1, 2009. You will start depreciating from that year and month until the next 20 years. We will assume that after the 20th year, it will have zero value. So our salvage value at this point will be zero
It’s 2019 and you are keen on selling it. That’s a 10-year depreciation. Which is $500 dollars costs spread in those ten years and $500 more before it becomes valueless since we are assuming it will become useless after its 20-year lifespan.
If you are going to make profit selling it off, you will need to make a sale that will cover the cost for the next ten years(assuming your cost for repairs and maintenance don’t change)
The net value for the dishwasher in 2019 is 500 dollars. If you are going to make profit on that sale, you will have to sell it off above 500 dollars. Let’s say you sell the dishwasher for $600. Your profit from the sale is $100. However, profit is not cash. Your overall cash is $600.
On the other hand, you will incur a loss of $300 on your part as some of the spread cost for your dishwasher will be totally overlooked if you sell the dishwasher for $200. But you will still have a cash of $200 which you can top with anyvmoney you have to get a brand new dishwasher.
(NOTE: THIS CALCULATION IS WITHOUT TAX)
Depreciation cost= (Original cost of appliance – salvage value) ÷ lifespan of appliance.
Other time we can just use the annual depreciation rate which is determined by using 100 percent divided by the lifespan of a product or equipment. For a water heater it is 5% annual depreciation.
The salvage value is based on what you expect to receive in exchange for selling any of your appliances.
NOTE: For the rest of this article, I will be using the annual depreciation rate using the Straight Line Method.
Have you ever considered how many times you sit on that white bowl? Think a little further…what about the rest of your family, friends, neighbours, etc.
Yet not a single “help-I-am-about-to-break” sign. That’s because your toilets can last for as long as 100 years. Yes, a CENTURY; even more, if you are alive to maintain it till then.
Toilets have an average life that spans 100 years. It could exceed that figure if well maintained. But I bet you must have gawked in surprise when you noticed your tank’s handle, or seat flapper just disappoints. Truth is, components of your toilet have a very slim lifespan than the seat and structure itself.
Toilets may have one of the longest life duration as a plumbing system, but that can be easily axed if maintenance is poor especially in commercial places.
Signs of a Malfunctioning Toilet
Clogs in toilets are very common sign you need to steer clear of them until they are fixed. While clogs are unavoidable, there are few other bad signs you should keep in mind too
- Cracked porcelain–you don’t want to have yourself testing the waters on that
- Water running into your tank won’t stop even when it has met its limits. Now you have a spreading puddle at the corner of your bathroom.
- Leaks from the tank or at the base
When Should You Have Your Toilet Replaced?
That’s a very odd question. Like who has their toilet replaced?
But, toilets should be replaced when you are forking out so much to repair and maintain them. That includes if you have a broken porcelain bowl, even a crack on the bowl is just as risky as it being broken.
If clearing clogs is an everyday experience, then you should considered calling your professional plumber to have it replaced.
Annual depreciation value of a Toilet
You could depreciate or spread the costs of your toilet over its lifespan if you’re going to place your house on a rental or sell it. This cost is usually done together with the entire house.
SINKS AND FAUCETS
These are important parts of a bathroom or a kitchen.
If your kitchen sink is made from acrylic they last a whopping 50 years. Sinks made from enamel are 5-10 years. Soapstone sinks outmatch enamel sinks with a lifespan of 100 years.
For faucets, the lifespan varies. Those mounted one in kitchen sinks have a lifespan of 15 years. The ones found in your toilet have a 10-year lifespan while those installed in bathrooms have a 20-year span.
Signs of a Malfunctioning Sink and Faucet
How long a sink or faucet should last before it is dealt a nail on the coffin is underlined by factors like frequency of use, proper installation, plumbing maintenance, etc.
When you begin to sniff out or see these warning signs, it could be your sink or faucet needs to be replaced.
Your sink and faucet need to be replaced when they are:
- Cracked, chipped or damaged
- Worn out making repairs very impossible to achieve
- Having repair costs that are way beyond a full replacement
- No longer beautiful or have completely lost their taste, appearance or just ugly.
There are plenty of brilliant faucet options to pick from if you are stuck deciding what kind to install next. Some of the good choices out there are wall mounted faucet, washer-less faucets, speaking of sinks; you may also go through our article highlighting the best options for sinks or wash basins.
Garbage disposals are electrically operated devices that are attached to the waste pipe of kitchen sinks.
They are mounted directly under a sink, designed to collect food waste and grind them into bits before they are flushed out by water in the grinding chamber of the disposal.
Normally, garbage disposals are supposed have a 12-year stint until they pack up.
But, if they are not careful handled or instructions on how to use them are quickly blown off, you risk shortening their lifespan.
Signs of a Malfunctioning Garbage Disposal
Garbage disposals should be given delicate care and attention just like the same doting care you give to your sinks. Avoid putting hard objects, peels, oils, etc., in the disposal if you don’t want it clogged.
Your sinks or drains are not the only plumbing items that are affected by clogs. Garbage disposals are commonly affected by jams caused by clogs. Ignoring a jam could cost you having them replaced. Other signs to watch out for include:
- Constants clogs
- Reduction in performance
- Faults switch and leaks.
Garbage disposals should be given extensive care. Be careful not to allow hard object slip into the can. This can harm the blade of the disposal when its turn on. Items like plastics, potato peels, pepper beans, etc can choke each the blade’s spin.
The average price for a basic garbage disposal is around $65. Batch feed units may cost up to $500 from $189. While stainless steel units with 1 horsepower are around $250.
The annual depreciation value of a garbage disposal is 10%
Dishwashers have proven to be reliable appliances over the years. A used-to-be luxury equipment has now become a staple and must-have tool for homeowners.
Dishwashers have an average lifespan 9 years. Though relatively low for an appliance that will have carry out tasks after every meal. But, that number is subject to change. Factors like brand and how often you are use it, affects the longevity of your dishwasher.
Signs of a Malfunctioning Dishwasher
Learning to quickly spot the signs of a dishwasher that’s about to bite the dust will help you rescue it just in time before it takes a severe knock.
As much as it is so relieving to just heap in your dirty dishes and have it washed so quickly, put your ears down to sniff out these signs.
Consider replacing or repairing your unit if any of these symptoms rear their heads.
- Flinching and unfamiliar noises inside the unit
- Your dishwasher doesn’t drain or fill completely
- It doesn’t heat up but still gets the dishes done
- The door of your unit won’t close properly or just too stubborn to open.
Discard or Resell
Only discard or cease repairing your dishwasher if the cost of repair has bitten too deep into your finances. Don’t take the bait of repairing your unit if the control board is damaged or your dishwashers fails to deliver a proper wash to your dishes. However, if they are minor fixes you can pay for off the bat, then go for it and sell if off if you can; especially before they reach their peak.
Making profit of a resell is quite simple. Only ensure your dishwasher is in a good working condition before you put it out there.
The annual depreciation cost of a dishwasher over a 10-year period is 10%.
For an average basic dishwasher which sells for around $65 over a ten year period using the straight line method, assuming its efficiency will be zero after a 10-year-period is $6.5 annual depreciation cost. Spread that cost equally like the example used for water heaters and you can sell it off for a profit.
Washing clothes with hands are soooo old school. That’s not to say your hands are not useful anymore. Only, with washing machines you won’t have to sweat and stress over washing your clothes. Not only is it time-saving, it is also efficienct. Just toss in your clothes and in few hours your clothes will be cleaned.
Washing machines like every appliances listed above, also have lifespans and these depend on factors like how well they are maintained, etc.
Not having to wash with your bare hands while sitting on a stool or arc your back for long hours for the next 14 years. Yes that’s how long your washing machine will keep spinning until its life drowns out completely.
Signs of a Malfunctioning Washing Machine
Highly performing washing machines perform a large number of cycles but can breathe their last if they are overworked. For maximum performance, always put the appropriate-sized loads.
Below are some signs of a malfunctioning washing machine.
- Excessive noise during a washing cycle
- Electrical panels no longer function
- During washing cycle, the drums stops turning.
When Should Your Replace Your Washing Machine?
Replace your washing machine when it has a crack in the tub, experiences leaks, has odors that won’t drown out, etc. Some of these faults can be avoided if you don’t overload the tub, clean the tub occasionally to prevent the accumulation of odor, etc.
If there are faults that can easily be fixed before you machine snaps when it is near the end of its lifespan, then have them fix and resold.
The annual depreciation rate of the washing machine using the prime cost method is calculated as (100percent÷lifespan of the washing machine) 7.1%. Some washing machines will come with dryers which makes them more expensive. Washing machines are basically of two kinds; top load and front load washing machines. Prices of high quality top load washers vary from $750 to $2000. Spread your units cost over 7.1% to get your depreciation cost.
What easier way to get clean water into your apartment and out of it than through your pipes. Your pipes live for a considerable amount of years. If you think about it, they are one of the few things you’d have to replace as a homeowner except there’s a leak or a clog or just some cut in the pipe.
Average Lifespan of a Pipe
This depends on the kind of pipe that is running the entire length of your house. Galvanized, steel and cast iron pipes can live for a range of 50 -100 years or more if well maintained. PVC pipes can last up to 75 years. If you’ve got none of those, perhaps a copper pipe, that will lend you a useful life of 50 years or close to that figure. PEX pipes are usually around 25-40 years. Brass pipes are around 50 years, while concrete pipes; 100 years.
Signs of a Malfunctioning Pipe
Water is very important. A slight cut in your pipes or a minor clog could hamper the flow of water into your home. Pipes for most of the time are usually exposed and so they react with a lot of things. Don’t even mention the sunlight that strikes directly against the bodies of these pipes.
Watch out for the symptoms below as these are signs your pipes are either getting old and need to be haul out or something is caught within it.
- Signs of discolouration on the tubings including flaking etc.
- Leaks and brown colour found in water due to corrosion.
When Should You Have Your Pipes Replaced?
If they have served their lifespan, have them hauled out and get them replaced with the help of a professional plumber.
When leaks are beyond repairs or consuming a chunk of your finances, have them replaced. If your home was built in the 1800s, lead pipes were common then. Chances are your water is still being carried by a lead pipe if you haven’t done any revamping yet. Replace all lead pipes in your home to avoid traces of lead in your water. This can lead to death.
The deprecating value of each pipe depends on their number of years. For example, for a cast iron pipe that would be 1.33% annual depreciation value.
For all the waste water whisked away from your toilets to your sewer, your sewer lines are doing one heck of a job.
Average Use-life of Sewer lines
It usually depends on the material being used. If it’s a cast iron or PVC pipe, they’d have almost the same lifespan only as the naked ones. Since they are buried underground and reacting with elements in the soil, etc. those numbers may reduce. For clay pipes which are often commonly used because they can withstand harsh chemical reactions it is usually in the region of 100 years.
Signs of a Malfunctioning Sewer Line
- Horrid stench around your home
- Cracks on PVC and ABS pipes usually due to hot water which exceeds the pipe’s threshing temperature for a hot substance.
- Gurgling noises, rusty, clogs or corroded cast iron pipes
- Broken or brittle clay pipes
Sewer lines should be replaced when they are signs of cracks. Brittle clay pipes should be replaced also. However, this should be done by a professional plumber.
HEAT, VENTILATION AND AIR CONDITIONING UNITS (HVAC)
It is hard to count how many times your air conditioner has saved you since you had it installed. Countless times right? Just walking in into a conditioned living room and the smell of modified dry air wafting your nose is relaxing. Air conditioners are a great, can’t-do-without household appliances. On the average they cost $3,500 depending on their quality. Low ends can cost around $1000, while high ends cost around $10,000.
Average Lifespan of an AC unit
AC units are like overworked toilets and faucets. They work tirelessly round the clock as long as you’ve got power and your bill’s not yelling at your face for outrageous power consumption by your unit. Central air conditioners have an average lifespan 15 years while air conditioners for rooms have a life span of 10 years.
Signs of a Malfunctioning AC unit
Beyond feeling stuffed in the basement filled with what’s not, and getting soaked and wet after breaking out in pools of sweats–that how it feels living in hot place–there are various other signs to watch out for.
- Not enough cool/ hot air going round could be a sign of a bad refrigerant.
- Your conditioning unit blows hot instead of cold could be a frozen or ice evaporator coil
- Wear and tears due to dirty condenser coil
- Poor airflow as a result of a faulty fan, damage compressor, etc.
- Leaking ducts due to rodents attack, etc.
- Others are clogged drains, misbehaving thermostat etc.
To avoid getting embarrassed all the time, ensure you clean debris off your ac units to prevent clogs. Replace dirty air filters when you feel your room is not as cold/ hot as it used to be, etc.
Before reselling your AC unit, ensure it is in a good working condition and has not neared the end of its lifespan. Give it at least four years before its useful life then trade it off and use the cash to get a new one.
The depreciation value for an air conditioning unit is 6.7% for a central unit and 10% for a window unit.
Patches of mold, and stains on your room walls and around the ones where your windows have been fitted into are signs that your home’s humidity levels are off the roof. And only a dehumidifier can change all that. They are staple appliance for homeowners. A true remedy for clearing off dust, reducing the level of humidity in your home and reducing allergens like molds, dews, etc. in the process.
The average price of a dehumidifier is projected at around $1,500 and can go as high as $2,800. This is for a whole-house versions. Those for crawl spaces and basements differ.
Average Lifespan of a Dehumidifier
Dehumidifiers have an average lifespan of 8 years before they breathe their last or no longer have any value if you are thinking of selling them off.
Signs of a Malfunctioning Dehumidifier
These devices help to eliminate odour from humid walls and clothes, shoes and furniture attacked by mold, mildew or termites. However, like every other household appliances, they are bound to face bouts of struggles and faults. Knowing these signs will help you fix your dehumidifiers in time.
- If your dehumidifiers runs but doesn’t reduce the humidity
- Frost on coils due to cold temperature
- Dehumidifiers refuses to turn on
You can avoid these damning surprises by replacing your air filter twice a year, cleaning the air intake and exhaust with a vacuum and a brush, the water collection tank with warm water, mild soap, etc.
Make sure you dehumidifier is in a healthy condition before you trade it off on a site like eBay. The depreciation value for a dehumidifier is 8%
If your air conditioning unit can distribute cold air so also can boilers. But only warm hot air, especially during cold periods.
That’s what makes them a great household appliance.
Prices vary for boilers. A conventional electric boiler has an average price of ranging from $700 to $3,200 without installation. Gas boilers price range from $900 to $1,600.
Average Lifespan of a Boiler
Electric boilers have a useful life of 13 years if you are rolling with one, while gas boilers have the biggest lifespan of 21 years.
Signs of a Faulty Unit
Boilers will begin to show the following signs when they are nearing a fault. Here are some of the signs.
- No heat
- Leaks and drippings in the system
- Rumbling noises similar to a boiling kettle
- Low boiler pressure
- Pilot light keeps going out, etc.
Boilers should be cleaned periodically like every other appliance in your home and given adequate maintenance like checking air vents, maintaining water level in boiler, keeping areas of the boiler that should be lubricated, well oiled, etc.
The depreciation value of a electric boiler is 7.7% while a gas boiler is 4.8%. Ensure you boiler is in a good working condition before trading them off if you ever plan to. Adding to that, trade them off before the end their useful life.
You can find a refrigerator whether it’s small or big sitting in the living room of homes nowadays. From storing of food, to improving its quality, and transporting of perishables that do not do well under heat, refrigerators are truly efficient and saving.
The average prices of refrigerators vary, depending on what type they are. Top-mounted freezer cost the least between $350 to $600, while bottom-mounted freezers cost a few bucks more from $800 to $1,200. Expect to pay around $700 for a base model of a side by side refrigerator or in excess of $2,100 for a higher quality.
Average Lifespan of a Refrigerator
For compacts refrigerators, their useful life is 9 years. Standard refrigerators can last as up to 15 years.
Signs of a Malfunctioning Refrigerator
When your stored food no longer gets as cold as they should when you bought your refrigerator the first time, it’s a sign your refrigerator has not been maintained properly. Other times it could be a leaky gas pipe, etc. As well as
- Excessive heat when you place the back of your hand at the back of your refrigerator. It is a signal your motor’s running hot.
- Your food is rapidly spoiling under constant power
- You can hear the ringing or buzzing sounds
- When you fridge has neared its lifespan
Refrigerators are meant to last at least 15 years if you have one of the side by side models. When these signs are still at their early stages, it’s okay to have them fixed. However, if they persist, consider recycling or discarding them, and then purchase a new one. You can resell your refrigerator if it is fairly okay or in good condition old enough to be sold. The annual depreciation value of a refrigerator over its useful life of 15 years is 6.7%.
Spread the cost over that percentage value in the duration of its lifespan and have it sold off before it kisses death.
Microwave ovens use less energy. Microwave ovens can be used to cook your food. Microwave ovens do not destroy the nutrients in your food, etc. That and many more is why microwaves ovens are good.
The average price for compact model microwave oven is $49.49 to $800 for over-the-top models.
Lifespan of Microwave Oven
Microwave ovens have a useful life of 10 years.
Signs of a Malfunctioning Microwave Oven
Some of the signs of a malfunctioning unit are:
- Your food doesn’t cook properly
- The door of the oven won’t seal properly
- It makes cranking noises, etc.
These are few of the signs you need to change you microwave oven.
The depreciation value of your microwave oven is 10% using the straight line depreciation method. If you are going to resell make sure your oven hasn’t crossed the 10-year useful life mark and is in a good condition.
If you need to get rid of excess dust or dirt in your home it is usually not easy if you don’t have a vacuum cleaner. These electric low cost devices get it done seamlessly and you won’t catch a sneeze or have a catarrh.
The average price of a vacuum cleaner is sitting at $50 for light weight base model. While for a more enhanced looking over-the-top model could cost as much as $1,000.
Average Lifespan of a Vacuum Cleaner
Like every household appliances you have from the tiles on your floor to the furniture in your bedroom, vacuum cleaners have their on useful life. The average lifespan of a vacuum cleaner used at home is 10 years. While those used in commercial places like your office is 6 years. It varies due to number of uses per year.
Signs of a Malfunctioning Vacuum Cleaner
Vacuum cleaners do a lot of cleaning work and remove allergens like mold, etc. But they can breakdown and these are the signs to watch out for when that starts to happen.
- Leaks or vacuum hose failure which in turn can lead to engine not running smoothly or the engine light is always flickering.
- The engine backfires at a precise time over and over again
When any of these signs show up, take note of them. If repairs are costing so much, it is worth saving up and buying a newer improved model.
You can also do some repairs and have them sold. The annual depreciation value for a vacuum cleaner is 10% for those used at home and 16.7% for vacujm cleaners used in offices.
An average water pump cost around $50 if you are looking for a cheap. Prices for top models can grow as far as $100 or more. These machines are very helpful. Without them we’d probably be using our hands to draw out water from a well or fetch water from a stream.
Average Lifespan of a Pump
Pumps don’t usually last a long time. They can collapse or need repairs after a 5-year period. The more reason they should be properly maintained.
Signs of a Malfunctioning Unit
- You are having a low water pressure
- Your water tastes really bad or its muddy
- High electric bills
- Rapid distrubing noises from your pressure tank if you have your pump connected to it, etc.
When any of these signs become a coming routine, you need to have your well pump or sump pump checked by a mechanic. You could flood your basement if your sump pump starting showing any of these signs and you just simply ignore them.
The depreciation value of a pump is 20%.
As a homeowner, your appliance will work for you efficiently and effectively over a period of time before it starts to decline. This period is called its life expectancy, lifespan or useful life. When it has crossed it lifespan, it begins to deteriorate. Faults begin to kick in. That’s not to say your device cannot have faults before the end of their useful life–they can if not properly maintained and signs of a failing equipment is ignored.
Depreciation is an accounting concept which spreads the cost of a fixed asset over the term of the assets useful life or lifespan.
There are many ways to do this. But the most common and simplest way is using the straight line method.
The prime cost method/ straight line method assumes that the value of a depreciating asset decreases uniformly over its effective life. It is spreading the cost of your appliances over their lifespan equally.
The annual depreciation value of any of your appliance incase you are wondering how I came about those percentage value is 100 percent divided by the lifespan of any of your equipment. For a water heater it is 5% annual depreciation, because they have a lifespan of 20years.
The depreciation value and useful life / lifespans of other home appliances have been put together in a table below. Be sure to check out your annual depreciation value of your assets.
If you are going to make profit over the resale of any of your equipment make sure they are in good condition, then have them sold beyond the cost for the remaining number of years they are to remain useful. See the example used in the water heater and use it as a guide.
ADVANTAGES OF DEPRECIATION
Some of the advantages of depreciating your assets or appliances are
- It gives you a way of recovering the purchasing cost of your item
- You are aware of the net value of your appliance especially when you have a building put out for rent.
- It helps you to match expenses incurred over the use of an appliance or an asset since they are part of your home. If your home is rented, you can calculate how much revenue your assets are generating. On the other hand, if its not, you still know the worth of your appliance.
DISADVANTAGES OF DEPRECIATION
Depreciation of durable goods in this case your electronics, furniture, and automobile only favour buyers of slightly used goods that still work well. For newer products not so much. These products depreciate quickly according to the double-declining method in their first year of use before gaining stability over the years.
The downside of depreciation is that it serves only those who buy “used goods” well as they can get them for half the price of a new one at a fair working condition, than splashing on entirely new goods.