Love it or hate it, moving home is a time rife with possibilities. This is an opportunity to start new, secure the space you love, and settle into what could well be your forever home. To make that happen, though, you will probably need to keep at least a small savings pot in the bank for after your moving day.
Unfortunately, many homeowners make the mistake of overspending on a property before they have even fully moved in. This can take a significant financial toll early on, and there is also a risk that it will leave you all out of cash for more vital repairs that you notice once you have lived in that space for a while.
That is a significant problem, and it could stand in the way of you and the home you deserve. Luckily, we have a solution, and all you need to do is ask yourself the following vital questions.
# 1 – Was That Expense Reflected In Your Purchase Cost?
High ticket expenses during your first weeks in a new property can be undeniably painful, but properties that need a lot of work will often come with a price tag reflecting that. You could, therefore, argue that those expenses have already paid for themselves.
Of course, this does not mean you can splash the cash post-move without a thought. But, if your property was, say, $50,000 cheaper than most others in the area, then spending this much on repairs, renovations, and so on is by no means unreasonable.
# 2 – Would You Spend More By Ignoring The Problem?
Spending huge amounts on small or inessential home maintenance is rarely advisable in the aftermath of buying a new home. Your finances will probably have seen better days, after all, so if you can put work off for a while, then it is worth doing so.
However, there are exceptions to this rule. Let us say your new home needs a roof replacement. This is not a cheap undertaking, but failure to contact experts like A&J Professional Services could quickly result in more expensive problems like internal leaks and more. Similar escalation can happen from ignoring structural problems and other sizable setbacks. In this instance, you would be fully justified in increasing your move-in budget to accommodate the work required.
# 3 – Are You Increasing Property Value?
It is understandable that you want to jump in and spend big to decorate and furnish your new home. Unfortunately, these changes do not strictly add to your property’s overall value, meaning that overspending here is unlikely to result in returns. You also might not know precisely how you would like the space until you have lived here for a while, meaning that money spent here could end up going to waste if you are not careful.
By comparison, big-ticket improvements like kitchen renovations or a modern bathroom upgrade will add a percentage amount to the value of your home. As such, setting a larger budget makes a lot more sense.
It is easy to splash the cash on a new home, but it is worth asking these questions first if you want to avoid overspending.
