First Time Home Owners: Here Are Five Things You Need To Know That Will Save You Money
By The Pocket Your Pounds Team | Published April 8, 2021
3. Don't ignore important maintenance
One of the new expenses that accompany homeownership is being held financially responsible for repairs. There's no landlord to call if your roof is leaking or your toilet is clogged. To look at the positive side, there's also no rent-increase notice taped to your door on a random Friday afternoon.
While you should exercise restraint in purchasing nonessentials, you shouldn't neglect any problem that puts you in danger or could worsen over time. Delay can turn a relatively small problem into a much larger, and costlier, one. The inspection you received before buying the home will have outlined all the changes that need to be made, but sometimes things can take homeowners by surprise. It's a good idea for everyone to have money set aside for home repairs, but especially those not living in a brand-new home. In general, an emergency fund is designed to catch all of life’s unexpected expenses or to cover regular expenses if you lose income. Adding an extra cushion can help pay for surprise home repairs without touching your primary safety net. Do what you can – try to set aside £100, to start. Once you have that, aim for £500, and so on. Including an extra few hundred dollars for your home will be enough to get your locks changed if you lose a key, to fix a leaky pipe, or patch a small roof leak – the little things that you don’t want to put off until your next payday or windfall.
4. Get Help With Your Tax Return
Even if you hate the thought of spending money on an accountant when you usually do your tax returns yourself, it can pay off. And even if you are feeling broke from buying that house, don't scrimp on tax preparation. Hiring an accountant to ensure you complete your return correctly and maximize your refund is a smart idea. Homeownership significantly changes most people's tax situations and the deductions they are eligible to claim.
Believe it or not, there are tax breaks and financial benefits that go along with owning a home. One major tax benefit of homeownership is the mortgage interest deduction, which “allows you to reduce your taxable income by the amount of money you’ve paid in mortgage interest during the year,” according to Nerdwallet.com.
Just getting your taxes done by a professional for one year can give you a template to use in future years – if you want to continue doing your taxes yourself.
5. Create a Homeowner’s Binder
You may have noticed during the purchasing process that there is a lot of paperwork involved in owning a home. Before you move into your new home, create a binder for important documents, such as mortgage and home insurance paperwork.
After your move-in, use the same binder to store all of the guides and warranties for your new appliances. If something expensive like an oven breaks, this could save you from shelling out hundreds on repairs, if you’re still covered under warranty. Store receipts for any home-improvement and moving expenses can go here as well – you’ll want to hang on to these for your taxes. You can also start collecting contact information for reliable contractors in this binder. Having a reputable contractor will save you from overspending on shoddy repair work which often does more damage to your savings in the long run.
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