Congratulations on finally becoming a homeowner and owning a property! We know how important this is to you, so we want to share with you seven sharp steps you should take as a new homeowner. These steps will help you in the long run!
- Don’t Overspend to Personalize
A large chunk of your saving just went to a down payment, closing costs, and then moving expenses. This is typically why first-time homeowners have a sparing budget after just purchasing a home. We understand you want to personalize and upgrade your new home to your liking, but don’t try to tackle it all at once! Don’t jeopardize your new homeowner status immediately and potentially put yourself in the hole financially. Instead, give yourself time to adjust to the new expenses of being a homeowner and take the time to replenish your savings. Those nonessential upgrades will still be waiting for you!
- Don’t Ignore Essential Maintenance
As a homeowner, you no longer have a landlord or management to reach out to for help when you have repairs or problems. While not having a landlord is usually a reason to celebrate, in this case, it could be a disadvantage. Now, you’ll have to call someone when there is a repair or problem. The issues that could turn into expensive ones should be dealt with immediately.
- Hire Qualified Professionals
While we love a good DIY like everyone else, sometimes there are professionals for a reason. Remember your home is a long-term investment that you live in, so it deserves a high level of attention and responsibility like any other high valued item in your life. You wouldn’t change your oil in your car if you didn’t know how to, right? The same applies here. Hiring a professional will keep your home in its most perfect and secure condition.
- Get Help with Your Tax Return
Like we previously mentioned, a home is an investment, and while you may initially cringe at having to hire an accountant for your tax returns, it is most definitely worth it. A home will usually change most people’s tax returns and deductions. An accountant will make sure your return is filed correctly so you can maximize your refund. And after one year, you can follow the template to use in the future!
- Keep Receipts for Improvement
You’ve just bought your beautiful home and maybe you haven’t thought this far ahead, but maybe one day you might want to sell it. So if you do any upgrades or home improvements, you need to keep the receipts to be able to maximize your tax-free earnings on the sale of your home. This is because the enhancements you make to your house increase your home’s overall basis.
- Know The Distinction Between Repair And Improvements
Following up on #5, not all home expenses can be used to determine your home’s basis. The IRS defines repairs as a part of being a homeowner, meaning it preserves the home’s value but does not enhance its original value. But it’s not always the case. A foreclosed house would be different since the home’s value would increase from the repairs. Repairs like replacing a roof or adding AC will help decrease that future tax bill when you decide to sell.
- Get Proper Insurance
Homeowners’ insurance is usually a necessity when you want to work with a mortgage lender. But your insurance needs to cover more than just your house. Other important insurances needed to secure your home will always be paid for are life insurance and disability income insurance. An umbrella policy is always a good idea as well since it will cover the slack that your other policies could lack.
While being a new homeowner is exciting, it’s crucial to start on the right foot in the beginning. Start your home search today by calling (512) 609-8098 or emailing us at Info@PrismRP.com