It has been said over and over again: buying a house is an expensive move.
Once you have actually bought the house, it becomes more difficult from a financial point-of-view for the homeowner to just go out and splash on anything that he would want.
Having said that, you are now the proud owner of a beautiful house that you can call your own!
The right thing you should start doing is getting your budget right: homeowners tend to waste a lot of money as soon as they buy a new house. After all, all those new rooms need decorations, new furniture, alterations etc.
While there are plenty things home buyers waste money on, let’s check out the main ones here:
(1) Home buyers waste money on the size of the house
If you haven’t realized it yet, it might dawn on you within the first few months: do you really need a house that size which comes with an equivalent type of expense?
Remember the more expensive the house, the more expensive the upkeep will be!
Here’s a solid tip: you don’t have to take the entire loan that you qualify for.
Larger isn’t always better and you might find yourself in a financial bitter spot as soon as the first instalment is deducted.
If you have taken this step already, perhaps focus on getting that outstanding bond amount down as soon as possible, as it’ll reduce your monthly repayment pressure.
(2) Home buyers waste money by immediately upgrading the open air-spaces
We all know this shouldn’t be a priority right now.
While you can’t wait for that new rock pool to be installed or the extended patio to be finished, these are things that can wait.
Let’s be real here: how do you want to have people over if they have nowhere to sit down? How can you swim carefree in the summer if you still sleep on an improved bed set?
There is a big difference between being poor and being house poor!
Re-prioritize your upcoming spending budget and take care of the necessities first and do what you want inside before moving to the outside.
(3) Home buyers waste money by replacing all security protection
Sure, if you’re buying your second or third home, you know you can easily ask your current security company to move with you.
However, if you’re a first-time home buyer or perhaps are relocating from out-of-town or province, it might be in your best interest to analyze your new house protection: is there a need to replace everything? Or do you only want a new alarm system? What about an electric fencing?
Shop around and get as many quotes as you need and decide on how you want to secure your new home.
Whichever route you take, it would be a good idea to stick with one company. They will probably be able to give you a better price if you’re buying all the protection from them.
(4) Home buyers waste money by feeling the need to fill up empty space
Yes, we know: you have 2 extra rooms in the house that you didn’t have before.
Remember that you were able to survive with the things that you had before you moved; you can do it for a little while longer!
That empty space does not need to be filled up immediately, so don’t go out and buy large items to put on display just to fill it up.
Rather use your cash towards the upcoming house renovations.
(5) Home buyers waste money on yard upkeep
Whereas it is very exciting to start the landscaping of your very own home, but this is not something you have to do the first weekend after moving in.
Lay off on the garden services for the time being and rather use your own tools to cut grass and take care of the weed.
Landscaping is a marathon, not a race, so don’t dive in right away and start making some serious landscaping mistakes!
It will come in time.
With the exhilaration of buying a new home comes the risk of spending money on unnecessary items.
Use these above-mentioned tips and don’t fall into the overspending trap!
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