Buying a home is a very exciting time. You’ll also know that it’s an expensive time. Saving for your deposit takes a lot of hard work, but the money madness doesn’t end once you get the keys. Even after you’ve paid your legal fees, taxes and everything else – there’s so much more to think about once you’re a homeowner.
Prepare yourself for your financial future with some of these money matters to think about when buying a home.
Buying furniture, appliances and all of those finishing touches
After moving into your new property, you’re going to want to furnish it and make it yours. Even if you have some existing furniture, the chances are it’s not enough, or you want to upgrade it for something new.
You’ll also need to think about the cost of appliances if your home doesn’t come with them, as these can soon cost thousands by the time you’ve got everything you need.
And finally, don’t forget those finishing touches! Everything from curtains to rugs have a price tag, and it can all add up when you’re decorating multiple rooms. It’s good to have a budget and savings plan in place to help you prioritise what you need now, and what you can buy in the future.
The good news is that there are a lot of ways you can save money on furniture and homeware to help bring down some of the cost.
Decorating and renovating costs
Decorating can seem inexpensive – doesn’t everyone decorate on their weekends? But the cost of paint and materials can soon add up to more than you realise. Hiring a decorator can be a good option to help you get a professional finish, but you can expect to pay an even higher fee over what it would cost to do yourselves.
While getting your home exactly how you want it can be a lot of fun, you might want to spread out the work to help you manage your finances better.
If you’ve bought a property with a garden, you’ll soon want to make the most of it. Whether it’s swimming pools and spas or an English garden, as with everything else that’s home-related, it comes at a cost. The cost of landscaping work can vary depending on what you want to do, although many people choose to do it themselves once they see the price!
You’ll also want to factor in how you’ll maintain your garden going forward, and what equipment you’re going to need to make it happen.
It can take several months of living in a new property to work out how much your bills cost. If you’re moving from renting to buying, you can expect some additional costs to pay your landlord may have covered previously, such as maintenance fees.
One of the easiest ways to manage your household bills is to create a budget. This will help you cover all of your bills, while also freeing up money for your savings and home improvement projects to stop yourself from getting into financial difficulty.
Insurance costs and security
You’ll want to think about getting different types of insurance when buying a home. In addition to contents insurance, you’re going to need buildings insurance to cover any potential damage to your home. You’ll also want to consider getting some kind of critical care and life insurance in case of unexpected events that mean your home will be paid for.
It’s also worth thinking about getting a home security system to help you protect your home and your valuables, especially if you’re going to be away a lot.
Having an emergency fund
As a homeowner, one of the most sensible thing you can do for your finances is to setup an emergency fund. This fun can cover huge, unexpected expenses, but it can also make sure everything is covered if you stop earning for whatever reason.
Having an emergency fund will help cover you for a certain number of months, but it’s also worth exploring the other types of help available. Income protection insurance can be valuable if you stop working – even if it’s just for a short while. Any loss of earnings because of an accident could mean you qualify for compensation through expert car accident attorneys, so it’s important to bear this in mind for the future. Making sure you have options if you’re caught in a jam can help give you peace of mind.
Owning your own home comes with a lot of responsibility, and the financial side can feel particularly scary. However, it all begins to settle down after a while and provide you budget well and don’t go overboard, you’ll be able to enjoy your new home worry-free.