A good financial plan for a new house

Turning the key on your brand new home is an amazing feeling. You’ll be overwhelmed with joy and this can cloud our judgment sometimes. Its natural for us to want to make our new home look and feel great so we splash out. However, one thing to keep in mind is while things are lovely nice and new just now they won’t be in a few years when you’re still paying off the debt.

 

Heres some tips

1. Don’t Overspend on Furniture and Remodeling 

You’ve literally just handed over a massive portion of your life savings for a down payment and moving expenses. Moneys probably tight for new first time home owners so not only are your savings depleted your money expenses are most likely higher too.

Everybody wants to personalise their new home and thats fine but don’t go take finance out of a £600 new couch.

2. Don’t Ignore Important Maintenance Items

There is now no landlord to phone if your roof has a leak or your boiler breaks. Try restrain yourself from purchasing non essential items and put that cash into a maintenance fund.. a rainy day fun.. a savings account. Keep money aside in case disaster ever strikes.

3. Hire Qualified Contractors

Don’t save money by making improvements or repairs yourself. If you’re not qualified and mess it up it could be a tad more expensive.

4. Don’t Confuse a Repair with an Improvement

Not all home expenses should be treated the same. Don’t mistake repairs with an improvement. Adding air conditioning or fixing the broken roof before it breaks might be a good investment.

7. Get Properly Insured

Get properly ensured! Seriously! Mortgage insurance, life insurance, and house insurance are all great investments for any new homeowner. Let’s say a few years down the line you lose your job, how are you going to pay for your mortgage payments? or let’s say you become ill and can no longer work, again how will you manage it? This is where mortgage insurance comes into play.

If you pass away how will your other half afford the full mortgage payments himself? Chances are he won’t manage it. If you pass away mortgage protection insurance will pay out a lump sum leaving your house for your love ones. This offers everyone great relief when times are tough.  Check out hello.ie for help on insurance.

 

Bottom Line

Being a homeowner brings many responsibilities. You must manage your financials really well in order to keep your home protected and keep your family safe so don’t let the excitement of being a new homeowner cloud your judgment.

 

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