Becoming a homeowner is one of the most exciting and memorable milestones you’ll experience in your lifetime. After creating a list of must-haves and searching near and far for the home of your dreams, you’ve finally found the place, and now you get to make it yours!
Whether you’re living the high life in a luxury seaside estate, an NYC penthouse, or keeping it lowkey in a humble-yet-chic craftsman, there are some financial tips all new homeowners need to know. In this post, we’re giving you the lowdown on keeping your finances in check as a luxury homeowner.
Continue to manage your budget
Whether or not you spend big bucks on your property, it’s always a good idea to keep your budget in-tact. By tracking all of your sources of income and subtracting your fixed and variable expenses, you’ll have a clearer picture of where your finances stand. With this insight, you can determine what features you can afford and which projects you can work on now, and which ones you’ll need to hold off on until payday.
If numbers aren’t your strong suit, you’ll be glad to know that there are several ways you can maintain your budget without breaking out the lined paper and calculator.
- Hire a professional accountant: Professional accountants offer personalized financial advice that can help you fortify your financial health and get expert advice on topics like investing and filing taxes.
- Use budgeting software: This is likely the more affordable option of the two, depending on your needs. Budgeting software is ideal for individuals who want daily guidance and real-time updates regarding their finances, but they typically don’t offer as much personal support as a human accountant.
Secure the best financing option
Unless you were able to buy your property outright, you’ll probably need to take out a mortgage loan until you’ve earned all equity on your home. But prospective homeowners shouldn’t go out and get just any mortgage—this mistake could cost you in high-interest dues or get you locked into a mortgage agreement that just doesn’t make sense for your lifestyle and financial situation.
To find the option that’s best suited to meet your needs, it’s important to consider all of the options available to you. This means asking important questions of your bank and other potential lenders, like:
- What credit score do I need to be approved for a loan?
- What kinds of home loans do you offer?
- Do you have any penalty fees I should be aware of?
- Do you offer fixed or adjustable interest rates?
- How much do you anticipate adjustable rates to increase or decrease?
Know the value of a good deal
All savvy shoppers know that you never need to pay full price for anything, and thanks to online shopping, finding the best deal is easier than ever. Whether you’re shopping for luxury home furniture or designer clothes, there’s almost always a more affordable alternative that can bolster your budget for your other priorities like travel or additional real estate investments.
Here are a few money-saving tips to help you out:
- Shop on discount sites
- Install an automatic coupon extension to your browser
- Wait for big sale days like Black Friday, Labor Day, and Cyber Monday
Find ways to make money on your home
Another great way to boost the value of your investment is to start making money off of it. All you need is a spare room, a vacation home, or a granny flat to earn some income from your new home. As a matter of fact, you can even profit off of the acreage of your estate by renting out your private property to campers.
You can make it as fancy or stripped down as you want it, though more amenities typically translate to higher booking rates. Some property owners will outfit their spare land with an airstream trailer, a teepee, or a yurt to create a hip and striking campsite that everyone from travel bloggers to families and personal friends will enjoy.
With these tips, you can continue to make great investments and enjoy the fruits of your labor!