Your home is likely the biggest asset you own. Having a financial plan to manage it is recommended. If you have a plan, you will be better positioned to pay and plan for home improvements. A financial strategy will budget for paying the mortgage, taxes, insurance, upgrades and routine repairs and maintenance. The benefit to you will be that you know how much you have to spend and what you need to put aside for maintenance and any desired improvements.
By analyzing your cash flow, you may find that you can pay a little extra on your mortgage every month, enabling you to pay down your loan faster. If you have a loan, you will need to have insurance. Be sure your insurance portfolio includes not only basic coverage but also liability coverage to protect from lawsuits. Make sure your insurance planning includes additional policies for natural disasters.
Property taxes will always be part of your financial plan, so keep track of how much they have crept up over past years and budget accordingly. Be aware that your tax obligation can possibly be reduced if recent sales show diminished value. Challenge your assessment.
Budget for maintenance and improvements. Your best ally will be the home inspection report you received when you bought your home. Be prepared to spend 1% to 3% of your home’s value every year on maintenance. A successful plan may yield extra funds for improvements.
Give me a call, and I will help you look at the total picture of the cost of home ownership to help create your financial plan.