Getting excited about owing your first home, that a landlord doesn’t have access to, is a wonderful feeling! Many home owners, however, lose their heads when it comes to renovating a new home and buying furniture. So if you are one of those lucky first home buyers who can still afford to buy a new home and take advantage of the lower than ever interest rates, consider the steps below to avoid overspending and making costly mistakes.
But first a word of warning – don’t overspend on that property. Make sure you buy with a rationale head and give yourself a clear maximum you can afford to spend before you go off to that auction!
1. Don’t Spend Too Much On Buying New Furniture and Remodelling
With home ownership come new costs and expenses, such as strata bills and water and trash payments, so it’s worthwhile to keep this in mind when looking to upgrade your old furniture for something nicer. Although it may be very tempting, don’t upgrade everything at once. Give yourself time to get used to the added costs of owing a property.
2. Don’t Overlook Important Maintenance Issues
While staying away from purchasing non-essential items, do not ignore any problems that could get worse over time or put you in danger. As there is no landlord to contact if your toilet is blocked or your safety switch is broken, be prepared to organise and pay for it on your own. Such HomeSource products as Home Assist and Home Emergency Cover can give you peace of mind when it comes to dealing with emergencies in your home. See our website to find out which product suits you more.
3. Get Your Tax Done By Professional
Most people’s tax situation changes significantly with home ownership, as it affects the deductions they are eligible to claim. Even if you usually do your tax returns yourself, hire an accountant this time to maximise your refund and make sure your return is completed correctly. You may choose to get professional’s help the first time, and you can do it yourself the next year if you ask accountant for a template to use in the future.
4. Find Qualified Contractors
Although it may sound contradictory to the first step, listed above, we do not recommend you making yourself those repairs and improvements that you are not qualified to make. Don’t try to save money this way, as it may not work out and may end up costing you at lot more in the long-run. While you can get away with painting your walls yourself, hire a professional to do the job you are not familiar with to avoid injuries and keep your home in the best condition. With HomeSource Find A Tradesperson you get access to our online database of fully qualified, insured and licensed tradespeople for your next project or repair job. For more insight, see our website.
5. Get Yourself Insured
Alongside with basic homeowners insurance, consider insuring your own life. You’ll need to have a life insurance with the person you live with named as a beneficiary. This would ensure that your relative won’t lose the house if you die unexpectedly. You may also think about getting disability-income insurance which would help with paying out your mortgage if you can’t work.
This article was inspired by something we saw in Investopedia – but most of the copy comes from our content rich website that’s designed to help homeowners in every stage of the home owner cycle look after their home, budget and themselves.