There are many factors when buying a home for the first time, but perhaps the most pressing problem is usually money. How can you pay for a new house? How are home insurance bills and premiums kept low?
How To Save Money In Your First Home
We are talking to some people who were standing on both sides of the owner’s equation: a real estate agent, a mortgage service provider and an owner. These experts in their field are also owners who have had more than one property. We asked them to share their top tips on how to save money for first-time homeowners, including how to make money from new property investment, how to make the house energy efficient, and how to avoid homeowners’ insurance claims. Owner. Here is advice from people who have seen it all and who have worked in real estate for over 35 years.
1: Consider buying a building to pay off your first mortgage
If you’ve just started as an owner, find out all your options. If you are willing to live in an apartment, you can consider purchasing an income-generating property, such as a multi-family property. If you plan well, you may be able to cover your monthly mortgage payments with rental income.
The initial purchase may be slightly larger than a single-family home. However, if you are ready to move to another house, you will get an increase in income if you can rent your previous unit. If you follow this step, you will need to make adjustments to your owner’s (and owner’s) policy, but your insurance company can guide you through these steps.
Advice to apartment owners: to balance your budget, save 40% of your rental income for your current expenses. This may include the cost of utilities, taxes, and insurance.
2: Maintain “living space” during major improvements to avoid rental
If you are looking for an agreement to facilitate the purchase of your home, your first home may need to be renovated. Consider moving before you finish work and avoid paying short-term rent while improving your new home. If you go this route, you will certainly save money, but it is important that you can live comfortably in your new space for the duration of your projects.
We spoke to an owner who was moving into his first home when he wanted to convert it from a single-family home to a three-family multi-family home.
They quickly learned that it is crucial to have a haven of peace in the chaos of renewal, where they can do everything they need every day. They made sure they could live, eat and sleep in a separate room from the building. Wise words to move in the middle of the renovation: Reserve a living space and the transition will feel much more manageable and cheaper.
3: Check the contractor’s references to avoid burning
These renovations? Most likely, you will not be doing everything yourself. Knowing how to hire the right contractor when starting your first home can be difficult. However, the owners we talk to recommend talking to their friends and neighbors about who does the kind of work you need locally.
The real estate agent hired an expert to improve the energy efficiency of his old windows. Everyone they spoke to said that this contractor had done a great job, so the owner did not check his references.
The entrepreneur proved to be volatile and difficult at work and pulled the duration of the project to its breaking point. As the project progressed, the owners found that the other contractors they knew that the window recorder was hard. The people who recommended it knew it too, but no one offered this information and the owners didn’tThe real estate agent hired an expert to improve the energy efficiency of his old windows. Everyone they spoke to said that this contractor had done a great job, so the owner did not check his references.
The entrepreneur proved to be volatile and difficult at work and pulled the duration of the project to its breaking point. As the project progressed, the owners found that the other contractors they knew that the window recorder was hard. The people who recommended it knew it too, but no one offered this information and the owners couldn’t ask.
Words of wisdom: don’t ignore call references or open questions when it’s time to hire a contractor. If you have the right person at work, you will save time (and time is money if you are billed by the hour).
4: Keep energy costs low with good insulation
One of the biggest surprises for new owners is often the energy costs. If you are a first-time homeowner and moving from a rental condominium or apartment, it will heat or cool many more square meters. And this can put pressure on your monthly budget.
The homeowners we spoke to agreed that in extreme weather at one end of the thermostat, it doesn’t matter what your heating or cooling source is if your home is well insulated. If the first home you buy needs improved insulation, invest in your property early to improve your home’s energy efficiency (and save money!).
5: Save water to save money
One of the best tips for homeowners who want to save money for the first time? Save water protecting water at home goes beyond turning off the tap when brushing your teeth. The worst water wasters include a toilet and a leaky faucet. Remember that water bills cost homeowners an average of $ 150 per quarter (about $ 600 per year). If you have a working toilet, this bill could triple to over $ 450. This is not a joke.
6: Fix before problems get more expensive
It is hard to imagine a problem that will be resolved during home repairs. The roots that move in the front street only move and a leaking roof will not be repaired. Home repairs simply need to be more extreme over time.
Follow water protection tips: if you have an old unreliable toilet that requires the attention of a plumber every two months, the cost of repairs in addition to the cost of wasted water increases on average by 220 $. You can pay for three or four repairs in a year, or buy and install new toilets for around $ 400.
Neglecting a working toilet basically means going to the kitchen, turning on the tap, and working for days. It’s just not smart. A new low-flow toilet will contribute to your water conservation efforts and the associated savings.
Repair reminder: take into account the cost of leaving the defective device for one month. Spread this out for a whole year; How much does it cost you to wait?