Congratulations! You’ve finally reached that point in your life where you plan to be in the same place for longer than a 12-month lease. And end up with a permanent roof over your head. Becoming a home owner is absolutely worth it; but it’s crucial that you are prepared for the differences between renting and being a home owner. Below are a few tips to guide you.
There’s a lot more to pay for upfront
When you buy a house, there are loads of costs that await you. The biggest one which poses one of the biggest obstacles for hopeful home buyers, is the down payment or first instalment as the case maybe.
Also, you have to worry about insurance as it is absolutely necessary to protect your investment, your belongings, and the likes.
Don’t forget that you may have to tuck away money for property taxes which usually varies based on location and ranges between 15-20 % of the property value.
When you are ready to buy your dream house you will discover that you need a real estate lawyer to draw up the purchase and ownership transfer contract between you and the seller, this also costs money… and much more.
If you don’t have your emergency funds set aside yet, now is the time
Setting aside a good sized “emergency fund” isn’t specific to homeowners alone, but is extremely important as a home owner. The bare minimum recommendation is to have at least three to six months of living expenses to fall back on for food, utilities, and every other expense you have.
You are your own maintenance manager
Your maintenance budget now must cover more than lightbulbs and remote control batteries. Aside from the emergency funds you’ve saved up, you’ll want to plan on spending at least 1% of the home’s value on maintenance projects each year. When you move in (and pretty regularly after that) take stock of the appliances you have and what kind of shape they’re in to prioritize upgrades and services. Bottom line – more regular maintenance is required of you as a homeowner as opposed to just paying for a maintenance / service fee like you did when you were renting.
Your neighbours are forever (or at least for quite a while)
This one is the easiest change to make when going from renter to home owner, and probably one of the most fun. Your neighbours are no longer unseen producers of endless stomping on the other side of your ceiling — they’re your allies in the mission to create a great place to live. So be friendly and considerate. For example, before you deny their requests to turn down your music at 11.00 pm — or too aggressively ask the same of them — just remember that they’ll still be there the next day. And the day after that.
Finally, moving from being a renter to home owner can seem daunting and complicated, but if you know what to expect, it’s a much less stressful transition. And if you’re working with professionals in the real estate industry, such as Osekemi properties ltd, we will be here every step of the way to walk you through the specifics of your situation and get you moving in the right direction. So, don’t hesitate to contact us today!