Clyde Holmes has insight to share about moving from being a renter to a homeowner. The transition to owning a home is quite a big one and comes with a great deal of responsibility. This is not a decision to make hastily, but rather research and preparation are required to help things go as smoothly as possible. Below Clyde shares 5 key areas for you to consider.
1. Insurance is Key
One of the most critical things a new homeowner needs to address is purchasing a home insurance policy that best fits their needs. This helps ensure not only the home itself, but also all your belongings within it are covered. Spend time investigating the various insurance options and comparing to see which is the right one for you. Take into consideration your specific location may have different insurance needs, such as whether it is located in a flood-prone area, or if there are any other factors pertinent to the location and physical characteristics of the home.
2. Expect additional bills
There are a number of bills which you may not be used to paying as a renter, that now become part of your budget as a homeowner. For instance, you are now responsible for covering costs all your utility bills: water; electricity; telephone and internet. Additional bills can include gardening services; security or maintenance fees. These each may seem manageable on its own, they do add up. Anticipating these costs and putting aside enough for them each month is vital to your money management.
3. Home Repairs become part of your job description
Over time, wear and tear is expected on both the physical structure of your home and also the furniture and items that are held within it. From leaky kitchen faucets, to cracked bathroom tiles, to a creaky stair – all these things must be fixed so that they do not become bigger issues. Researching and learning how to make these minor repairs yourself can also help save you money in the long term. Always put safety first, and for areas that you are unsure about, or that are more technical (e.g. repairing air conditioning or plumbing) do seek professional advice.
4. Maintenance over time helps save you expense down the road
Regular maintenance and care for your property is a necessity. Ensuring that you upkeep everything in a clean and working fashion helps to prevent minor issues from developing into serious ones that become large expenses. Keep a regular schedule and a list of all the items to be checked and cared for, so that your home stays in tip top shape.
5. You can let your home “work for you”
By following the advice above to responsibly maintain your home in peak condition, you can help to keep your property at its optimum value. Once well maintained, your home is an asset and may be eligible for Equity Financing, “by using the ‘equity’ you have acquired over the years, to finance other expenses such as education, debt consolidation, investment, medical expenses and even vacations.” To learn more about Home Equity Financing, read this article here.
Clyde hopes these tips help you navigate the process of becoming a homeowner. Don’t hesitate to reach out to us at (contact details here) if you have more questions.