When buying a new home, we all logically want to end up with the best property possible. Unfortunately, homes that tick all the boxes often come with steep price tags and, while most of us are willing to pay at the top end of our budgets for the right house, we also face added moving stress by doing so.
Generally speaking, homeowners could therefore benefit from withholding at least $5,000 of either their savings or their mortgage agreements to address unexpectedly expensive new property-based issues that don’t always make themselves known right away. Here, we consider just three of the most common examples of unexpected new-home costs that highlight the need for additional savings to secure your sanity and general happiness in a new property.
# 1 – Electrical rewiring
Rewiring that’s imperative for household safety and the avoidance of fires, etc. can cost as much as $2,100 at even a standard rate, with certain projects threatening to breach the $10,000 mark. And, in properties that haven’t been touched in a while, it’s by no means an unusual requirement. Without any money in the bank, homeowners will be left facing the safety and operational risks of failing to get this done for potentially years. Overcome this risk by simply making sure that you have the cash to manage even this major complication.
# 2 – Boiler replacement
Boilers need replacing around every 15 years, and this fact comes back to haunt a surprising amount of new homeowners. After all, few previous owners will seek heater installation knowing that they won’t be around long enough to justify it. Hence, when you turn your heating and hot water on for your first day, you may well find that they either don’t operate efficiently or don’t work at all. This is especially problematic as it affects your daily life, and could result in frozen pipes and expensive escalating problems if not addressed right away. By comparison, having a saving stash that allows you to address this can keep costs down, and comfort high.
# 3 – Making your mark
You also won’t be able to judge how well existing home decor works with you/your furniture until you’re living in this space. If you decide that it’s not a match, you could again spend a few grand either redecorating or buying brand new furniture and accessories. This is, of course, an essential expense for helping you to love that home at last, but it’s a cost that you’ll have to set back if you’ve blown your entire budget. With that being the case, the ideal home that you went over the limit for in the first place can start feeling like a space that will never suit you. You could argue, then, that keeping cash aside to tackle this is imperative for making your move worthwhile in the first place.
Moving can be stressful – moving without savings can be worse. Avoid these pitfalls by making sure that you factor for this before signing on the dotted line.