Thursday, February 13, 2014
Buying a new home, whether it’s your first house, a vacation home or a weekday home, can be quite an experience.
Adding a personal touch to make it your own can also be exciting, however, before you start repairing and renovating your new home, take heed of these common pitfalls.
Be cautious of these possible mistakes for hassle-free home ownership.
Setting your priorities straight
Trying to accomplish everything at once can make for some dire consequences. Sit down and figure out what your plans are for your new home. Assess the property’s condition, whether it would need repairs or improvements.
You should make it a point to differentiate between repairs and improvements - repairs are necessary for a safe and healthy home environment, whereas improvements make your space more functional or beautiful.
Consider hidden costs such as utility bills and monthly dues as well, as these are overhead expenses that may also dip into your budget.
Overspending on furniture and renovations
Buying a new home can put a dent in your savings and income.
Down payments and closing expenses are paid up front, while home loan payments are monthly dues that need to be fulfilled. Know your financial situation before you get carried away with renovations and furniture purchases.
You can always make home improvements and additions later on, but losing your home and defaulting on your loan is a possible worst-case scenario you shouldn’t ignore.
Hiring unqualified workers and contractors
Interior renovations require highly skilled workers, as shoddy workmanship may show in the carpentry and finishes.
Repairs and renovations usually run the risk of going over budget, primarily because of repeat work. Avoid this situation by hiring a capable contractor to handle your home renovation project.
Ask for referrals from family and friends. If a contractor has done a renovation job for someone you know, it may also be a good idea to check his or her work out.