7 Smart Steps Every New Homeowner Should Take
There are very few things that are as exciting as moving into a house that a landlord has no access to. You have the freedom to read in your hammock and no one will question you if you decide to paint your dining room baby pink or any other color that you may want. Becoming a first-time homeowner is one of the best feelings that you can ever experience, but be careful not to lose your head and make some mistakes that can ruin all your hard work.
Whether you’re a first-time homeowner or you’re planning to purchase your dream home, here are seven practical concerns that you should acknowledge to protect your investment.
1. Perform Regular Maintenance
Ensure that you have a monthly checklist for all your to-dos including changing air filters, lubricating garage doors, and trimming the shrubs near your air conditioning unit. While these simple steps may seem too obvious, they’ll help you keep your home in tip-top shape and help you find problems before they turn into expensive home repairs.
2. Evaluate all Purchases Carefully
During your Philadelphia Home Search, it’s tempting to spend money purchasing spiffy furnishings that suit your personal style. It’s important to restrain your budget and make special purchases on a monthly basis.
3. Hire Professional Contractors
You have spent a lot of money during your Philadelphia Home Search process before buying your home and you should try saving every dollar where you can. However, if you are not a professional contractor, avoid making any improvements or repairs by yourself. Remember that your home is an investment and it requires a similar level of care that you would give to other things that you value. You can do some tasks such as repainting the walls yourself. However, don’t go cutting holes for wiring and start playing around with electric cables. By hiring a professional, you will ensure that the job is properly done and avoid injuries or even death.
4. Don’t Overspend on Remodeling
After conducting a Bucks County Home Search and paying the down payment, closing costs and moving expenses, your savings may be depleted. Because you’re a first-time homeowner, you will want to personalize your new home to look more beautiful and fit your taste and preferences. However, home improvements don’t have to take place at once. Take some time to adapt to the new home-owning expenses such as trash bills, power and water bills, and extra insurance coverage.
5. Consult a Tax Professional
As much as you hate the idea of spending more money on an accountant, especially at a time when you’re feeling broke after buying your home, a tax professional will know the tax deductions that you are eligible for including real estate property taxes, mortgage interest that you paid and other points that you may have paid on your mortgage. A professional accountant will also complete your returns appropriately and maximize your refunds. Home ownership will change your tax situation and deductions that you are eligible to claim, and hiring a professional to do your tax returns for a year will give you a template that you can use in years to come if you want to do your taxes by yourself.
6. Don’t Get Confused Between Home Repairs and Improvements
According to the IRS, repairs are part of home-ownership and are important in the preservation of your home’s value, but they do not enhance its value. For instance, if you purchased a foreclosure and fixed several broken stuff, the value of your property will be worth more. However, the IRS won’t care because you purchased the home at a discount due to the unmade repairs. You will only be able to decrease future tax bills when selling your home after making improvements such as adding a central air conditioning unit or replacing the roof.
7. Contact your Insurance Agent
After your Bucks County Home Search and purchase of your new home, your mortgage lender will require you to purchase a homeowners insurance that can replace your home in case of a disaster. However, you may now want to purchase other coverage such as life or disability insurance, especially if you have a spouse or children that rely on your income to repay the mortgage just in case you’re unable to work and continue paying your mortgage. You may also want to consider acquiring enough liability insurance that will protect you when someone gets injured at your home. In case you live in areas that are prone to natural disasters, ensure that you beef up your protection. Get additional cover from perils such as earthquakes and floods because they aren’t covered under typical homeowners’ policies.
As a new homeowner, now is the time to savor and create special moments in your new home. By spending a little time on these smart steps, you will be able to keep your investment safe and secure.