Throughout your house saving days, you followed the rules and did everything to make yourself as attractive as possible to lenders. You’ve kept an eye on your credit score, and paid off overbearing debts. You’ve been careful not to indulge in extravagant purchases, and you’ve maintained a job with a substantial income. The lender approves you, and the panic subsides, for a little while anyway. Until the real cost of owning your first home gradually begins to sink in.
Bills, Bills, Bills
As if the mortgage payment wasn’t eye-watering enough, you have a whole heap of bills to pay for. Water, gas, electric, food are of course essential. Which is why it’s beneficial for you to estimate how much you will need to pay for all of these bills before buying your first home.
When planning to buy a first home, forward planning is the smartest thing you can do. You can do this by making a spreadsheet and noting down all of your expected costs. For help on estimated costs for running your home, there are plenty of sources online. For instance, you can get a rough guide for your electric and gas usage based on filling in a few details about the property you want to buy. It will prevent you from getting yourself in a pickle when you’ve got the keys.
If your budget doesn’t work on paper in consideration of what you need to pay out, there is still hope. You can look for ways to cut back. For instance, see the best unlimited broadband deals online or check out the app created by money saving expert, to alert you of the cheapest available energy offers in your area.
Alongside the bills, is the cost of servicing your new home. Whether decorating or replacing the boiler, fitting new windows or a new roof, dealing with damp, it all costs money, time, tears. The bigger and older the house, the more costly and plentiful your expenses are expected to be.
In consideration of maintenance and upkeep, you can decide whether you’re happy spending a certain amount of money each month to update your property. Or alternatively, maybe a smaller home, with less maintenance is more fitting for your budget.
No one wants to be house poor. The phrase kippers and curtains come to mind for those that overestimate how far their income will spread in keeping a roof over their head. Plus keeping it in working order AND having money left over to enjoy life. So don’t forget to add your Netflix subscription, gym pass, coffee and cake fund, your car finance payments, and love of shoe shopping into your budget. This will help you make sure you have enough to keep your home running and have money to spend on you.
The real cost of running your first home can be a lot. Which is why it pays to; bring bills down where you can, to budget ahead for how much your new home is likely to cost you in the long run and to check after all the house costs are paid for each month, that you still have money left over to play with.
Disclaimer: This is a collaborative post.