Costs you need to be prepared for when you become a homeowner

Most consumers have traditionally dreamed of owning their own home. They want to enjoy the freedom of home ownership and save money on renting after they have paid off their mortgage. However, there are a number of financial costs that many people neglect to consider when they become homeowners. Here are some factors that you need to consider before you become a homeowner:

 

Liability

You can run into any number of disasters as a homeowner. You need to safeguard your home against fires, floods, theft, termites and hundreds of other potential problems. You can try to protect yourself against these risks.

Unfortunately, your insurance policy does not fully protect you against every potential problem. For example, most insurance policies won’t protect you against flood damage. You will need to read your contract thoroughly and take the necessary precautions to protect your home and ensure you will be covered against any damages that may arise.

 

Maintenance

You can’t call a landlord when you have a problem that needs to be fixed. You are personally responsible for fixing any of the problems you may run into. You will either need to roll up your sleeves and fix your own leaking plumbing or pay a professional to do the job for you.

 

Mortgage risks

There are a number of potential pitfalls that you can run into with your mortgage. You will need to be very careful about understanding when payments need to be made, how interest is accrued and how the structure of the mortgage can change over time.

You face a much bigger risk when you are delinquent on payments as a homeowner than a renter. As a renter you face being evicted. As a homeowner, you will risk losing your house and all the equity you have built in it.

 

Challenging market

The market for real estate has finally stared to turn around after it crashed over four years ago. However, prices of new homes are still considerably lower than they were before the recession.

This is an advantage to people who are trying to buy new homes. They have the opportunity to buy at a steep discount. However, this also illustrates the challenges that you may face as a homeowner if you need to move or sell your property for whatever reason. The recent housing market crisis has shown homeowners that prices aren’t always going to increase. You will need to be prepared for this possibility if you ever need to move.

You will be best off if you decide to buy a property in a location you know you are going to be happy with and don’t plan on moving for at least a decade. This will reduce the risk that you will be forced to sell your house at a loss.

Prepare for these challenges

There are a number of challenges that you will face as a homeowner. Make sure that you adequately prepare yourself for them and have a realistic idea of what you will need to do when you own your home.

About the Author: Kalen is a personal finance  writer who talks about home warranty companies in az.

* All images US-PDGov

U.K. homes at risk as flooding continues

By Sally Marsh

As news broke that 2012 is expected to be the ninth warmest year on record and scientists evaluate the effects this may have on global warming and related issues, the UK was being faced with severe flooding across the country. At one point in November, The Environment Agency had some 196 flood warnings in place and in excess of 230 flood alerts. The north-east was the most affected by the flooding whilst the River Severn reached the highest peak since the mass flooding of 2007. 

The question this brings about is how to best protect one's property from flood damage. Advanced measures are usually the best. The purchase and installation of flood products may reduce and even safeguard the property and its contents from flood damage. There are various measures which can be put in place in advance to prevent flood damage.

Raising door thresholds can stop shallow water entering the building. The installation of purpose-built boards against doors and low windows can further reduce the chances of water entering the building. Raising damp-proof courses and sealing floors can prevent water rising from the ground. Fitting non-return valves to drains and water inlets and outlet pipes is another useful precaution, while pumps fitted within under-floor voids and basements can extract water when it is present.

Reducing the risk of damage within the property is equally important. High mounted shelving for valuables and wall mounted audio and television equipment can reduce the damage that occurs in the event of flooding. Moreover, replacing doors, windows, kitchen and bathroom furniture with water resistant equivalents and raising any electrical appliances and sockets can be a wise thing to do if you feel that your property might one day be at risk of flooding.

This list is not extensive, but care should be taken to make the property as resilient as possible to flooding in order to avoid and reduce damage to the building and content as well as the associated costs. When purchasing products, ensure that they are constructed in accordance with national quality standards. Furthermore, it is important to be up-to-date with the latest flood alerts to allow sufficient time to put the relevant temporary measures in place.

When the nation is subjected to a prolonged bout of heavy rain, there is always the risk that rivers will overflow, flooding residential areas. There is little we can do to prevent this, but we can prepare so that the impact is minimised.

This article was written by Sally Marsh, a landlord with a keen interest in landlord insurance.

How to protect the valuables in your home

By Katelyn Porter

You can never been too prepared when protecting your home from burglars. Unfortunately, you never know when your house can be under attack. With a few simple steps, you can go great lengths to protect your valuables in the event your house is broken into.

Small Collectibles

This depends on the size of what you are collecting. You can be collecting anything from coins to cars. With smaller collectibles, it's easier for intruders to grab them on the run. It's important to not just store these items in a dresser drawer, as this is one of the first places an intruder will rummage through.

Invest in a small wall safe. They can range in various materials, and can have a key or combination. Find one that fits your budget and needs. Small safes can be easily hidden for you to store all of your collectibles and small valuables. Hang a picture of the safe. Never tell your friends and family where this safe is. The less people who know, the safer your will be.

Electronics

Tech junkies spend a lot of money on their electronics. If you don't take your laptop or tablet with you when you leave your home, you can purchase apps to protect the devices. Some of them have security camera apps that will snap a picture of the intruder. Be sure to set passwords for these devices, so in the event they are stolen, your information cannot be accessed.

For items like cameras, keep them out of sight when you are not using them. Leaving them in a window or on your desk can make it an easy steal. For larger items like your TV, mark down the serial number so you can give it the authorities.

Jewelry

Jewelry is another item that can easily be stolen. For jewelry you wear each day, it's fine to leave out on your dresser when your home at night. Although for nicer pieces of jewelry you don't wear often, you should take the necessary steps to hide it. These items can easily be stored in a small safe, and then you won't have to worry about misplacing them.Costume jewelry doesn't need to be hidden. So be smart about what you are storing in your safe. It will be more heartbreaking to lose $500 necklace than a $5 pair of earrings.

Medication

If you take a controlled substance, this could also put you at risk for a burglary. Different intruders have different motives for the intrusion, but in the end it comes down to money. Whether they are abusing drugs or selling drugs, controlled substances can get them money or a high. Keep these out of sight, especially if they usually left on your nightstand.

Attached Images: 

 

License: Creative Commons image source 

Katelyn Porter has been a victim of burglary in the past. After a result of the devastating experience, she has taken the steps to create awareness about protecting home valuables. She stores her US gold coins, fine jewelry, and important paperwork in her safe, and has invested in a security system.