Leigh Insurance Agency of St Augustine Blog
There is that undeniable excitement in owning a house for the first time. However, many first-time homeowners are inexperienced in managing their expenses. This problem leaves them making several mistakes that put them in financial trouble. You can avoid these mistakes by being knowledgeable about maintaining your house money.
Here are some tips on how you can make smart decisions in owning a new house.
#1 – Avoid Overspending Early On
In buying a home, a lot of your savings go to the down payment, closing costs, and moving expenses. In addition to that, there are those new monthly expenses for water, garbage, and home insurance. Save money first to allow yourself to recover financially. Home upgrades and personalization can wait until you can afford them.
#2 – Leave Room for Maintenance
Compared to owning a unit, expenses for maintenance is higher because you have to manage it yourself. Don’t hold back on maintenance, though, because ignoring your problems can build up to something costly or even dangerous.
#3 – Seek Assistance from Professional Contractors
No, don’t try to install that electrical outlet yourself! The expenses you’ll have to pay in hiring a qualified contractor can’t compare to medical costs for attempting to fix the house yourself. Your home is where you’ll be living and making an investment, so give it the best professional care only a qualified contractor can provide. Don’t forget that there might be a permit you need to obtain from a local building authority.
#4 – Keep Receipts to Gain Benefits
By the time you sell your home, your receipts can raise its basis and maximize tax-free earnings. For example, if you’ve lived in at least two of the five required years, you may earn as much as hundreds of thousands when you decide to put your house for sale. Of course, that takes into consideration your status. Selling the home co-owned with a spouse will further give you both additional tax-free profit.
#5 – Purchase a Good Insurance
Home insurance is a compulsory requirement given to you by your mortgage lender. It will help you recover from potential losses while paying for the house. More importantly, if you have a family, life insurance will cover the house expenses, should you die unexpectedly. Last, but not least, auto, disability, and umbrella coverages will help you in the event of a lawsuit or inability to work.
Being a first-time homeowner is exciting, but it can be financially troublesome if you don’t wise up. Follow these tips, and you can rack up the advantages of maintaining your place of living. Most of all, don’t forget to cushion your expenses with a well-thought-out insurance plan. It will serve as the net that will catch you when financial trouble comes your way.
At Leigh Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (904) 826-0799 or Click Here to request a free quote.