What's Your Property Goals For 2022?

Even though it's been a tumultuous year so far, the New Year is looming (2022 )and that means a fresh start. While you are working on your personal goals, why not create a list of your property goals as well for 2022? These are small things that you can do that your future self will thank you for.

Here are a few things you can start doing today that will make all the difference tomorrow:

 

 

Rearranging monthly expenses

Owning a property involves taking care for it and ensuring that it is supplied with every necessity. Many new expenses will come your way in the form of EMIs, maintenance charges, utility bills, repair costs, upkeep bills, etc. This is precisely why renting has been very popular among the millennials. Nevertheless, for new home owners, the changed fiscal scenario would require you to rearrange your expenses in such a manner that your bills are paid in time, without causing too much strain on your monthly finance.

 

Going slow on furnishing the new home

While a new home may require new furniture, fittings, drapes, curtains, lighting, etc., getting all of them in one go might be disastrous financially. Thus, it is necessary to chalk out a detailed plan, to go about the re-modelling gradually. While the first year, your savings could be used to change the furniture, the next year could be used to improve the lighting fixtures. Adjust with your old furniture and other things till you have saved enough to make a new purchase.

 

Avoid taking fresh loans

Lending rates are at record lows. This makes auto loans, home renovation loans, etc., quite affordable. As banks present it, this could be a once-in-a-lifetime opportunity to own a vehicle or to get all those expensive furnishings for your new property. This might certainly tempt you to purchase a new car or go for a complete remodeling of the property right after your home purchase. This would, however, have an adverse bearing on your monthly finances. Overburdening yourself with new loans at this point would amount to poor judgement, as the economic conditions also pose a risk on job security and business safety. It is advisable to sit tight and maintain a wait-and-watch mode, right now.

 

It is only after a significant portion of your home loan is paid off that you should think of applying for a fresh loan. Having to serve two big loans would be a big burden, otherwise.

 

Do not opt for too many insurance products

As part of home loans, banks also push you to buy home insurance and home loan insurance policies, primarily prescribing all their arguments in favour of these products, playing on the fear factor. The kind of uncertainties we have seen in the recent times, may also prompt us to opt for insurance, in order to face any future difficulties in a planned manner. However, one should not lose sight of the fact that taking excessive insurance, makes a huge dent on one’s yearly earnings. Unless you understand the product properly and its intended benefits, do not purchase home insurance and home loan insurance products only because your banks recommend it.

 

Saving up for small repairs and maintenance

With usage, your new property will be subject to normal wear and tear. The paint on the wall will lose its sheen over some years. Grout lines may appear on the floor, despite regular cleaning. You would get a leaky tap or faulty electricity wire. Sometimes you would have to call an exterminator for pest control or a plumber to fix a choked pipe. These would, by and large, be regular occurrences that would not only need immediate handling but also cost you. Keep saving additional money every month. to address such issues in the new property. If left unattended, these issues could significantly impact the property’s health.

 

Adjusting social life to cut down unnecessary expenses

 

A new home also makes it incumbent upon the owner to make certain changes in one’s social life. You may have to significantly cut down the number of movie outings, fancy dinners and trips to malls, meant for leisure activities. House ownership also means you will be able to throw less number of parties in a year or at least reduce the number of guests invited at each such occasion. Even if you cut the numbers of these celebrations by half in a year, you will be able to save up a significant amount of money, to take care of your new responsibilities as a house owner.

The Bottom Line

These property goals are easy to achieve and they will make an impact in the future. Everyone wants to maximize their investment and get the most out of it, so why not start today? Get our free market appraisal to start your real estate journey with us

real estate agent in Ingleburn

 

Note: This is not a financial advice