Buying a home is a very big expense. Having that new shiny house will keep yourself caught up in rampant lifestyle inflation.
Here’s a quick advice: STOP SPENDING!
Owning a home comes with its fair share of unique costs like property taxes and urgent repairs and oh, the energy bills! So try to not add other cost by shelling out for unnecessary expenses. Here are some major cash outlays that buyers can avoid.
Too much house
Being approved for a hefty purchase price puts you on a high. According to Andrew Gipner, a financial adviser at Longview Financial Advisors in Huntsville, AL, “The house that you can afford with the money you’re lent can make the budget go out of whack.”
Consider having less closet space, buying fewer bedrooms or maybe eliminating a formal dining room to your wanted list. “You don’t use the dining room nearly as often as you think. It’s kind of a wasted space.” Says Noelle Hans-Daniels, a Sotheby’s Realtor® in Indianapolis.
Fixing up your outdoor space ASAP
You might be itching to host your first late-season barbeque for that housewarming party or you’ve been dreaming of having those koi pond. Hold on! Updating your outdoor space shouldn’t be your first priority, especially if you’re tight on cash. Landscaping and other décor can be put on pause. Building something new will cost you double or a lot more than you can chew on. So exercise some caution before doing anything rash. Try pricing out your plans with a landscape contractor, and consider rolling them out in phases if possible.
Old, outdated insurance
“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.”
It might be time for a change. Shop or look around. Just because the same company had a good deal on auto or renter’s insurance doesn’t mean it’s the best fit to protect your home. You need to go through all your options carefully, look for a deal that won’t crush you financially but will leave your house and its belongings secure. Because it’s not just your stuff that you need to protect, even your roof, yard and foundation needs it too.
“A lot of people will go out and say, ‘Oh my gosh, I’ve got to fill this space and buy stuff,’” Gipner says. “I’m not against possessions, but the way some people do it can be seriously detrimental to their finances.”
Moving out from an apartment can leave you breathless with how much space you have in your new home. Astounded with an extra bedroom, a big dining room and oh yes, another bedroom! Breathe. You don’t need to fill it all at once. Give yourself, and your home, time for personality to emerge.
See what you really need and what you really like. Save it for the renovation fund, because you’ll never know what the future holds.
Many homes don’t come with appliances installed, so first-time homeowners might find themselves making large purchases like for a dishwasher or refrigerator.
Here’s a good tip: You don’t need the extended warranty.
Of course, something might break within the relatively slim service window, but the money you’ll spend fixing one thing will be far less than the extended warranties on all the things. According to Consumer Reports, your average warranty costs should be about $123 for major appliances, and a single repair costs not much more. It’s a risk, but you’ll come out ahead in the long run.
“You can still be part of an HOA and cut your own grass,” Gipner says. “You don’t have to pay someone an exorbitant amount of money to come out and cut your grass.”
Yes, having your own yard is definitely exciting. It’s important to keep it healthy and watered, but you don’t need to go overboard. Resist the temptation of hiring an additional help for your yard – even if you’ve lucked into an HOA that covers it. A gorgeous lawn is achievable – and it can be done all on your own. You can try, right?
Source: realtor.com, homesgofast.com, lifehacker.com
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