A home is one of the largest investments you’ll make in a lifetime.
Tens to hundreds of thousands of dollars are spent on a home with the expectation that it’ll one-day pass onto the children and their children. Handing over the keys will carry a story of maintenance, troubles, and financial investments. All being worthwhile having known the value it carries to the next generation.
Throughout the years there are many instances where you’ll need to make investments from the annual inspections and repairs to personal projects such as with remodeling.
Want all areas covered to secure the home and your financial futures? Let’s get started.
The Regular Expenses of Owning a Home
Regular expenses of owning a home can amount to thousands of dollars each year. This may seem like a steep investment but consider the tens of thousands that it may cost by letting it slip by.
These regulars include:
A low, monthly cost of a professional security service will help deter break-ins and theft. Remove this possibility and save on having to repurchase big ticket items like a television, laptop, or jewelry.
Look at your local security options to find a reputable security company to install cameras, motion detectors, and monitoring services. Ask the important questions such as the average response time, the brand of equipment they use, contract details, and costs to ensure you’re with a great company.
Regular maintenance on common household appliances and foundation are easy enough to do by yourself with a bit of sweat equity. Sometimes you’re able to let them go until the finances are right but it’s always best to get on them sooner than later to avoid extra problems.
Maintenance could include:
· Cleaning air ducts
· Repainting and refinishing
· Mulching & landscaping
· Fixing water lines
· Repairing electrical sources
Refer to owner’s manuals, sources like This Old House, or instructional videos on YouTube if you plan to DIY these fixes. Otherwise, Angie’s List and Yelp can put you in touch with professionals.
Do you have the proper training to identify major problems with the home foundation, roof, and other big elements? Probably not.
Regular inspections will help identify upcoming repairs. Plus, these inspections provide documentation in the home which provides the necessary records – for legal reasons – when you plan to sell or hand over the home to others.
Costs of inspections vary but the general range is $350 – $600 nationwide.
The One-off Projects to Secure and Increase Longevity
The one-off projects are those types that may happen just once or twice within the timeline of owning your home. These typically cost thousands of dollars but prevent a myriad of potential disasters.
These one-off projects could include:
· Tree trimming to prevent damage caused by falling branches during a storm
· Replacing a faulty HVAC unit especially before winter sets in
· Repaving the driveway after cracking and deterioration
· Reroofing the shingles (or other materials) to stop damage to the upper foundation
· Foundation repair
· Replacing the siding to stop leaks, mildew, and other damaging effects to the inside
· Fixing broken sewer or water mains
Start a side-saving fund for these occurrences. Else, invest in home owner’s insurance in the unlikely event these items cause big problems when you’re not fully ready to the repairs and updates.
If you’re aware that the children will take over ownership of the home one day then consider joint investments. Passing the home onto the next generation creates family wealth. Increase this opportunity by working together with these big projects versus going at it solo.
The Big “What If?” of Selling
Perhaps you don’t intend to hand the keys to the kids or maybe they don’t want it. That’s fine because you could always sell or rent it! The regular maintenance, security, legal requirements, and projects should still be part of the overall care and investment in the home if you plan to resell.
Not to mention the great tax write-offs if you’re smart about it.
These regular expenses and one-off projects are part of the home owners experience. You’ve made a huge investment so it’s your duty to protect it and see that it lasts.