Provided the area that you live in, house prices can be very high and saving for a home can be harder. The cute articles flowing on the web about how you can easily save for a house if you just cut out a few frivolous expenses like your morning coffee are simply unrealistic for most of us. Often, saving the down payment on a property means years of hard work and disciplined living. When you have finally made it to the finish line and bought your home, the financial responsibilities do not end there. The cost of maintaining a home in good condition is not minimal; and when you have made a bad choice by purchasing a house with hidden problems, it becomes very stressful and pocket emptying.
Some houses have all sorts of hidden issues that emerge once you’ve moved in and before you know it, you’re spending an overwhelming amount to make repairs and cover all your monthly bills. The key to avoiding those sky-high costs is choosing wisely when you’re buying the house in the first place. These are some of the best ways to make sure that you’re not buying a money pit.P
Here is a very informative video by Business Insider on how to think smartly about your finances when buying a home.
Have an Inspection Done
In general, new construction is more expensive than older homes in the same area. Among buyers, there are different preferences. While some prefer brand new homes, other appreciate the warm and the feel of a home that has been occupied by a family. Many professional in the real estate industry would recommend having an inspection even on new constructed homes. It’s important that you vet the building company and make sure that their reputation hasn’t been tarnished by other projects. Often and unfortunately, buyers move in to find that the house has issues and the contract doesn’t offer them the appropriate protection, so they’re stuck. But if you do your research thoroughly, you should be fine.
On the other side, it is a must if you’re buying an older home unless you are an investor and you can take that high level of risk. The best way to ensure that the house is in good condition and avoid any future financial headache is to have an inspection done. Reach out to friends and family, search the web for vetted inspectors with good reviews and select a professional who will be able to pick up on the subtle signs that you and I would miss.
Ask About Energy Costs
With the rise in popularity of solar panels and other similar technology that reduce energy consumption, there are ways to save money related to energy cost. However, your energy bills could be one of your biggest expenses besides your mortgage payment. The energy costs of a house can vary tremendously depending on the quality the windows and doors are, what kind of insulation the house has, and how efficient the heating system is. Cutting your energy costs is one of the easiest ways to save money around the house so whenever you’re looking at a house, always ask about it and, if possible, see some of their previous energy bills.
If you put your deposit down on a money pit, you’re going to struggle financially for a long time once you move in, so follow these tips to help you avoid problems.