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  • Writer's pictureLendX Financial

How to Protect Your Biggest Investment: Your Home

Congratulations on getting your mortgage and being a homeowner. If this is your first home, you may be aware that this is perhaps your biggest investment. Nobody will tell you the fact that planning on maintaining and protecting your home is a responsibility you should take up seriously, perhaps, even before you move in. We got your back on how you should go about doing the same.

Make timely mortgage payments: It is no secret that if you miss your mortgage payments or are late, besides the extra charges incurred, your credit rating tumbles too.

Condo fees: If you own a condo in a building, you would have to pay a monthly fee for the condo, even if you do not use the services that come along such as maintenance of common areas and amenities like gym, pool, concierge etc. You must also bear in mind that the condo fee may increase from time to time depending on the reserve fund and the cost of utilities. Condo owners also have to pay a fee for special assessments, which is a one-off fee for any unexpected major repairs.

Utility costs: People often tend to undermine the cost of operating a home. These may include operating fees of water services, heating, cable and streaming service providers, internet, telephone etc.

Home repairs: The regular maintenance and repair costs come with owning a home. These include but may not be limited to snow removal, landscaping, pool maintenance, furnace, air conditioning, and roof replacement. It is advisable to set aside a chunk of your savings towards these expenses.

Have an emergency fund: There are times in life when unexpected costs hit you out of nowhere. This could range from an unfortunate accident or illness, a job loss, or sudden unexpected repairs. Rather than staring at them, your emergency funds should be enough to cover at least three months of house expenses. Automatic transfers are a good way to ensure the same. It would be great if you could save 5 percent of what you earn towards an emergency fund. Besides, savings never harm.

Home Insurance: Home Insurance is a must to protect your home in the event of a theft, or other damages and losses covered by the insurance sum. Having an insured home also helps in getting you a part of the living expenses (such as renting a home or living out of a hotel) in case there arises a situation when you may have to live outside of your home for some reason.

Evacuation and fire hazards plan: You should also have in place an emergency evacuation plan in case of a natural disaster or a fire. Make sure you fire extinguishers work along with smoke alarms to protect life as well as property from damage.

Last but not the least, it is always good to spend judiciously and live within your means. If you are living a comfortable life and spending less is an option you must ensure that you tilt towards the same.

If you need any help with any of the home maintenance measures do not hesitate to approach us.

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