Things New Homeowners Waste Money On
It's been said time, and time again: Buying a home is a big expense! Once you've made the purchase, it can be easy to get caught up in the rampant spending lifestyle and feel the desire to fill your new home with new things.But here is some advice: Don't.Owning a home comes along with costs that may seem to be hidden at first. Things like property taxes, maintenance and repair bills, energy bills, the list can go on. We'll let you in on the top things new homeowners waste money on, and how to avoid them. Keep reading to learn more, and click this link to read the full article.
Too much house
This one requires some thought before you actually nail the deal: How much house do you really need? Just because you're pre-approved for a hefty purchase price doesn't mean you should go as big as you can."The house that you can afford with the money you're lent can make the budget go out of whack," says Andrew Gipner, a financial adviser at Longview Financial Advisors in Huntsville, AL.Not sure where to trim? Consider having less closet space, buying fewer bedrooms, or—especially—eliminating a formal dining room.
"You don’t use the dining room nearly as often as you think," says Noelle Hans-Daniels, a Sotheby's Realtor® in Indianapolis. "It's kind of a wasted space."
Fixing up your outdoor space ASAP
Once you close on your home and move in, you might be itching to host your first late-season barbecue. Or maybe you've been dreaming about a koi pond, like, forever. But hold on: Updating your outdoor space shouldn't be your first priority, especially if you're tight on cash. Unlike couches and beds, which are essential to a functioning house, landscaping and decor can be put on pause.That goes double if you're building new: According to Hans-Daniels, building your backyard at the same time as your home can cost "a lot more than if you did it after the fact."So exercise some caution before committing: Try pricing out your plans with a landscape contractor, and consider rolling them out in phases.
Old, outdated insurance
Still using the same company that offered you renters insurance seven years ago? It might be time for a change. Shop around."You may stay with the same company, but you may find something that's a little better price for the same thing," Gipner says. "Sometimes, people may not want to shop around or may be married to a particular company."Just because the same company had a good deal on auto or renters insurance doesn't mean it’s the best fit to protect your home. Go through all your options with a fine-toothed comb, looking for a deal that won't crush you financially but also leaves your house and its belongings secure.After all, now it's not just your stuff—it's your roof, yard, and foundation you have to protect, too.