Congratulations on your new home purchase! Buying a home is an exciting milestone that comes with many perks. From investing in yourself and your future to giving yourself options when it comes to lifestyle and more, a new home is a big step for anyone. With being a homeowner comes responsibility, but also freedoms you might not be aware of. Here are some financial planning and even money-making tips and tricks you may not have considered but could work well for you in the future if you’re a new homeowner.
Updating Utility Usage Meters
The first steps to financial security when buying a new home include making sure you have a budget for emergency expenses and maintenance costs, as well as a plan for how you’ll save money going forward. Utilities are a great place to start.
When you first get your shiny new keys, you aren’t likely thinking about utilities and updating your meters. But you might want to think about that soon, or even before your home’s closing. After your mortgage loan payment, one of your biggest expenses will likely be electricity and heat. Own a multi-family home? FlowRite Metering provides experts in utility sub-metering and utility use monitoring. Calling them and exploring all your utility meter options is something that could save you money down the road.
While considering the expenses like utilities that come along with owning a home, do some research on ways you could save money on energy, heating, and more. A few renovations could add up to a bigger savings account quicker than you think. From replacing drafty windows to repairing faucet leaks, keeping your home in top shape will mean saving money in the years ahead. If you have the budget for it, bigger jobs like adding solar panels and replacing heating systems to energy-efficient ones may also be the way to go.
Refinances and Passive Incomes
A home loan with 5% deposit could be very tempting for those looking to refinance while real estate marketing is moving fast. Maybe that’s how you bought your first new home. Immediately after buying a new home, you won’t be in the market to refinance your mortgage loan, but that option will come up quickly. It’s better to think about refinancing as a new homebuyer, and even consider potential passive income opportunities to cover your monthly mortgage payment while your home is still new.
Look five years into the future. How will your homework for you? Is it possible you’ll want to rent out the space, make a second home purchase and use this one as a real estate investment? It’s never too soon to begin exploring ways your home’s equity will work for you long term. Many first time home buyers buy a smaller home with plans to make renovations and upgrade to a bigger home in a short few years. Others know, going in, that their first home will be their forever home. While neither answer is wrong, it’s smart to have a plan. Doing so could mean you borrow more money as you go and dictate how and where you spend extra cash on your home. It will also dictate what loan amount you’re looking at and what your credit score should look like as a result.
Renovations That Will Pay Off Long Term
If you’re someone who plans to be in your home for ten years or more, there are specific areas where you’ll want to look at ways to save money. Those heating and solar installs and upgrades will work best for those who plan to be around to reap the cost-saving rewards of their hard work and upfront expenses. The great news is that even if your plans change, you can always use those solar panels and energy-efficient heating as a carrot for buyers who will be all the more interested in purchasing. That ability to change your mind is just another benefit to owing your own home.
From saving money on utilities to the pride that comes with homeownership, owning a new home means a lot of decisions and the full autonomy to make them. No more calls to the landlord when something goes wrong. Instead, the freedom to spend and save money in a way that works best for your budget and lifestyle is just another benefit that comes with owning a home.