Buying a home is a very big expense – and once you’ve kicked off all that spending, it’s easy to find yourself caught up in a rampant lifestyle inflation. After all, you’ve got an enormous new house just waiting to be filled with all sorts of nice stuff, right?
Well, take some quick advice : Don’t keep spending. Homeownership comes with its fair share of costs – property taxes, urgent repairs and electric bills. There’s no need to add to their cost by shelling out money for extra expenses. Here are six major outlays that buyers can avoid.
Too much house : This one requires some thought before you actually nail the deal. How much house do you really need? Just because your pre-approved for a hefty purchase price doesn’t mean you should go as big as you can. Not sure where to trim? Consider having less closet space, buying fewer bedrooms, or even eliminating a formal dining room.
Fixing up your outdoor space ASAP : Updating your outdoor space shouldn’t be your first priority, especially if your 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. 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Old, outdated insurance : Still using the same company that offered you renters insurance from a few years ago? It might be time for a change and to shop around. You may stay with the same company, but you might find something that’s a little better price for the same thing. Just because the same company had a good deal on auto or rental insurance doesn’t mean it’s the best fit to protect your home. Go through all of your options and look for a deal that won’t crush you financially but also leaves your house and its belongings secure. After all, it’s not just your stuff, it’s your roof, yard and foundation you have to protect too!
Space-filling stuff : If you’re moving from an apartment, chances are good you’re astounded by how much space you have. Don’t feel like you have to fill it all up at once. Give yourself and your home time for personality to emerge. Instead of immediately stuffing the TV room with a generic new couch and coffee table, wait it out. See what you really need and really like. In the meantime, stick the money you save into a renovation fund.
Extended warranties : Many homes don’t come with appliances installed, so first time homeowners might find themselves making large purchases (like a dishwasher or refrigerator). Here’s a tip – you don’t need the extended warranty. Yes, something might break within the warranty window but the money you’ll spend fixing one thing will be far less than the extended warranties on all the things.
Yard maintenance : Having your own yard is definitely exciting, and while it’s important to keep it healthy and watered, you don’t need to go overboard. Resist the pressure to hire additional help for your yard – even if you’ve lucked into an HOA that covers it. You can still be part of an HOA and cut your own grass, you don’t need to pay extra money for someone to come out and do it for you. Don’t be tempted by the sales pitches you’ll receive after your purchase goes through. A gorgeous lawn is achievable and it can be done on your own.
