Financial Advice for New Homeowners
Owning your own home has traditionally been considered a part of the “American Dream.” But, while there are certainly benefits to owning your home, there are also a lot of costs that goes along with it. From coming up with a sizable down payment to having an emergency fund available for life’s unexpected crises to simply having the funds available for maintaining the home, you need to budget your money wisely if you want your home-owning experience to go as smoothly as possible.
If you’re a new homeowner, it’s important to keep your finances as healthy as possible. And, this begins by having an idea of what to expect. Here are four things you need to know about money and owning your home.
#1: Maintaining a Home is Expensive
When you buy a home, it is important to keep the home’s annual maintenance expenses in mind when determining how much home you can afford. While every home is different, on average, a homeowner can expect to spend as much as four percent of the home’s value in maintenance and upkeep costs – annually! This means if you have a home worth $275,000, your upkeep costs could be as much as $11,000 per year, and that’s not including any major replacements or repairs.
#2: Don’t Get Comfortable With Your Property Tax Amount
Depending on where you live, your municipality may reassess your property value every year, every two years, or every three years. If your property’s value is assessed higher this year than last year, then your property tax will most likely go up without an advanced warning. As a result, you need to include some wiggle room in your housing budget so when your property tax rises (and it will!), you won’t find yourself in trouble coming up with the extra money.
#3: You Need to Create a Budget
When you make the transition from a renter to a homeowner, you’re going to be solely responsible for everything. You won’t have a landlord or property management firm to call when things go wrong. So, you need to create a budget so you can effectively manage all of your monthly expenses more easily. Having a budget (and sticking to it) is the number one thing you need to do to ensure good financial health when you own your own home.
#4: You Need to Have an Emergency Fund
An emergency fund is a savings that will help get your through some of life’s more expensive situations. While renters can get away with three months’ worth of income saved, a homeowner should strive to build an emergency fund equal to or greater than six months’ of income. This will ensure your family and home is protected for six months in the event you lose your job or are diagnosed with an illness that prevents you from working. The emergency fund will also prove beneficial in situations where a costly home repair is needed, such as the HVAC system or roof. Make your emergency fund a part of your budget and any time you have to draw from it, make sure it gets replenished!
Save Money – Buy a New Home from Trinity Custom Homes Georgia
One of the best ways to keep your new home expenses low is to buy a brand new home instead of an older one. Your new home from Trinity Custom Homes Georgia will be built to the very highest quality standards, so you can expect several years’ worth of enjoying your home before you have to even think about performing any major maintenance. Extending your peace of mind even further is the warranty you’ll receive on your new home and everything in it. This coverage allows you ample opportunity to create your budget, build your emergency fund, and save more money in general.
Call Trinity Custom Homes Georgia today at 888-818-0278 to schedule a consultation with one of our experienced custom home builders. We have the experience you need in a home builder.