This subject takes me back many years to when my wife and I became first-time home owners. Although the process of buying and owning a newly built or existing home has changed considerably, there are some basic mistakes that people continue making. As I look back, we definitely made a few of them ourselves and even with the best advice you will probably make some yourself. It's okay and the world as we know it will not come to an end. By making and realizing our mistakes, we grow. In the case of home ownership, we can learn what we really, cherish, value and what is most important to us.
1. Underestimating the hidden costs of owning a home. You are aware of your mortgage, insurance and tax payments but many people underestimate utility costs such as electricity, natural gas, water/ sewer and trash collection. The costs of maintaining lawns, landscaping and flower beds are often overlooked as well as general home maintenance items, cleaning items/supplies, and any tools you may not have.
2. The premise that you have to fill your house with new furnishing right away. This was not an option for us, as it isn't for many first-time homeowners. Estimated costs to furnish a home are anywhere from $3,000-$15,000 per room or up to 50% of the purchase price of your home. If you bought a 2,000 square foot home for $250,000 with 3 bedrooms, 2.5 baths, kitchen, dining room and family area you are looking at a minimum of $25,000 and up to $125,000 depending on your tastes. It's okay to have only the essentials to start. You can add items, either new or used as you go along as your budget allows. The stories and memories you will have down the road on how you "roughed it out" will be pricelist. Remember your most valuable assets are the people in your home.
3. The amount of time it takes to properly clean and maintain your home and property. The average time to clean each room varies greatly depending on the size and use. You should plan on 10 minutes each day per room for general day to day items plus 30 minutes per week for each room. For general lawn and outdoor care, you should plan on 5 hours per week during the spring, summer and fall. Typical general maintenance (see my Home Maintenance blog) will consume about 50 - 75 hours per year on average. With this in mind, you can see that home ownership is not for everyone and armed with this information you may opt for a condominium with services that take care of all your maintenance and exterior needs.
4. Your neighborhood will be like the ones you see on Hallmark television. You may get to choose your friends but you don't choose your neighbors. You are going to have to learn to go with the flow on this one and remember to each their own. You know the neighbor I'm talking about. They have the bright green garage door and purple shutters and never mow the lawn. You hear their dog barking but can't quite see it through all the junk laying around. If you value your sanity on this one, you should most definitely move into a development with a strong Homeowners Association that has rules and codes that define all activities and give you a place to file complaints. Otherwise, you will have to do your best to get along and use your local ordinance officer for illegal nuisances. By the way, the green garage door and purple shutters may be something you just need to get over. Life is just too short!
5. Lastly, based on numbers 1-4, you buy a home that is more than you need or can comfortably afford. For you, a fixer upper may be the best path to home ownership. If you do not possess all the skills needed for remodeling, your local Handyman is an excellent resource to perform tasks that are over your head. There is more to life than your home and your resources of time and money may be best spent elsewhere. Yes, many memories may be made in your home but who is to say they can't be made on other experiences that are only possible if you had a little extra time or money.
In a nutshell, buying a home should not primarily be a monetary investment designed to bring you a monetary return. It should bring you joy and a place of retreat to spend time with the ones you love and hold dearly in your heart. Not only do you invest your money but also your valuable time. Remember, time is not money - money is money and you can always earn more. Time however is limited and cannot be replaced. The biggest mistake people make is saying, "If I buy a big expensive house and fill it with expensive furnishings, I will be happy". The only problem with that is they have to spend a majority of their time earning more money to keep up with the Jones’s and have no free time to enjoy life. By the way, the Jones's are miserable.
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