As exciting as becoming a homeowner for the first time can be, it can also be frustrating for many people. After spending a significant sum of your savings on your deposit and closing costs, you sometimes have very little money left over to dedicate to the many changes you’d like to make to help your new property feel like home. Despite feeling the financial pinch, saving money and transforming your new home on a budget can be easier than you think. You just might like to take some of the following actions:
Fix Furniture Rather Than Replace It
Many people would prefer to buy new furniture rather than fix broken furniture. However, if you don’t have money set aside for new furniture once you move into your new home, consider fixing what you have instead.
For example, if your dining table legs broke while moving into your new home, you can purchase table height metal table legs and attach them to your old table, saving a significant sum of money in the process. You can also patch rips in sofas, reupholster your cushions, and buy new replacement legs for beds rather than an entirely new bed frame.
Not only do you save money by fixing your possessions, but you also save the environment. You can give your furniture a new lease on life rather than sending it to a landfill and contributing to our growing waste problem.
Trade and Barter
You might not have spare money for tasks like gardening, painting, and general house repairs, but that doesn’t mean you don’t have valuable skills or products you could barter. If you have a friend or family member with a skill you need, see if they would be interested in trading their time for something desirable you have to offer. Not all products and services need to cost money if you’re willing to think outside the box and use your connections.
Look for Used Goods
Visit your local home renovation store, and you’ll likely be shocked by how much everyday DIY tools and products can cost. Even simple products like hinges, paintbrushes, and door handles can cost more than you possibly expected.
Keep home renovation costs to a minimum by looking for used goods online. Many homeowners who have undertaken renovations advertise leftover materials online for far less than in retail stores. You might also be able to pick up used tools that cost a mere fraction of new ones, with plenty of life left in them for your DIY tasks.
Don’t Rush Into Tasks
When you’re not happy with an element of your new home, it can be tempting to want to change it as soon as possible. This can sometimes mean you make rash purchasing decisions without considering whether there are more cost-effective options to help you save money.
Instead, get comfortable in your home and become familiar with all parts of it. You can think about the different elements you don’t like and the possible DIY upgrades you can explore in the future without spending a significant sum of money.
Visit Demolition Stores
The average building company doesn’t like seeing perfectly good housing materials go to waste. During a demolition project, it’s not uncommon for them to salvage doors, windows, shutters, fixtures, and other materials and deliver them to demolition businesses where they can be on-sold to homeowners.
Rather than purchasing these materials new, homeowners can find what they need for a far more affordable price. Whether you’re replacing a gate, a door, or standard fixtures, don’t be afraid to check out your local demolition businesses to see what’s available. There are considerable money savings to be made.
Set a Budget
Taking on a mortgage can be daunting for many new homeowners. Alongside paying back the bank for your mortgage, you must also cover property taxes, insurance, maintenance, and, in some cases, HOA fees.
Knowing your costs can be integral to understanding where you can save money. Write a list of your outgoings compared to your income, and set a budget for each area of spending, such as house-related costs, entertainment, utilities, and groceries. The more in control of your spending you are, the more money you might be able to save.
Get a Boarder
Mortgage interest rates have skyrocketed in recent months, leading some homeowners to wonder whether they’ll be able to meet their mortgage repayments in the future. If you have a spare room and don’t mind sharing your home with someone else, consider renting it out to someone looking for accommodation.
Not only are you helping someone to put a roof over their head, but you’re also getting financial help to pay your mortgage. Boarder payments can also help supplement renovation costs, potentially speeding up your timeframe for completing your DIY tasks.
Invest in Energy-Efficient Appliances
Old and inefficient appliances not only detract from your home’s beauty but can also cost you a fortune to run. Sometimes, you have to spend money to save money. If you have an old washing machine, dishwasher, or fridge, consider upgrading them to something more efficient to potentially reduce your energy bill. You can also sell your appliances to offset the costs of new ones.
Explore Tax Deductions
There can be many perks related to owning your own home, such as owning pets and making changes to your property without asking your landlord. However, an unexpected one is possibly eligible for federal homeowner tax deductions. Talk to your local tax specialist about any you might be entitled to.
Home mortgage interest is often a deductible expense, along with qualified home mortgage insurance. You might also be able to receive a tax deduction for your state and local property taxes, real estate broker fees, and title insurance.
Tackle One Task At a Time
Some homeowners start ripping down walls and stripping off wallpaper as soon as they step foot in their new homes. While there’s nothing wrong with doing this if you have plenty of money set aside for renovations, it can be a good idea to hold off if you don’t. Renovation costs can often exceed what homeowners expect, meaning some projects might sit unfinished for a long time. Instead, focus on one task at a time, and prioritize the most urgent.
Saving money as a new homeowner can be imperative when you’ve never had the responsibility of your own home before. There’s no harm in having a vision, but you might like to take some of the actions above to ensure you don’t renovate beyond your means or start projects you can’t afford to finish.