Are you a new military homeowner, or are you preparing for your first home purchase? Congratulations! Buying a home is both exciting and challenging, but you can make the experience smoother with the right strategies. Here are some easy hacks that can help you save money and get the most out of your new space.
1. Plan Your Mortgage Pay-Off Strategy
Military families excel at strategy, and it’s a skill that can be applied to finances as well. Although a 15- or 30-year mortgage may seem set in stone, it’s possible to pay off the home sooner. Consider setting up an extra automatic payment per month directed toward the principal. This could potentially reduce the loan term by years.
2. Create a List of Contacts for Home Maintenance and Repairs
Something in a new home is bound to break. Instead of scrambling to find a reliable repair service during an emergency, compile a list of local contacts for maintenance and home repairs. This proactive approach saves time and stress when home maintenance issues arise.
3. Save and Organize Receipts
Good financial organization saves time and money when tax season arrives. Whether physical or digital, create dedicated folders for various expenses related to the home, including:
- Items purchased for the home (for potential sales tax deductions)
- Energy-efficient appliances (some may qualify for tax credits)
- Repairs made. Repairs amount to a more significant deduction when/if your property turns into an investment rental, but keeping these receipts together will help with expense comparison in the event of future repairs.
Organizing all your receipts and expenses will simplify tracking expenses and maximize deductions.
4. Understand How Your Home Works
Before moving in, familiarize yourself with the home's systems, such as shutting off electricity, gas and water. Take advantage of the final walk-through or request a quick demo from the home inspector. Knowing how to operate these systems can save money and protect your safety.
5. Paint as If You PCS Tomorrow
When choosing paint colors for the home, consider the possibility that you may rent out the home in the future. Use highly durable, semi- or high-gloss neutral paint to withstand wear and tear while allowing for easy touch-ups. Opt for standard colors from well-known brands such as Sherwin-Williams or Behr to make repainting easier before moving.
6. Check Your Circuit Board
Older homes often have circuit boards that are poorly labeled or confusing. Labeling the circuit board accurately can be invaluable during storms or emergencies, when quick access to power shut-offs is needed.
7. Update Your Life Insurance
While it's a sensitive topic, ensuring adequate life insurance is crucial. Death represents one of the greatest hardships in real estate, so it's important to protect your family’s financial future. Military families can access life insurance with war clauses through organizations, including Servicemembers’ Group Life Insurance, USAA and Navy Federal Credit Union.
8. Plan Out Your Home Spending
During the excitement of moving into a new home, it's easy to overspend on unnecessary items. Prioritize what is needed for the house by sketching out room layouts, listing essential items and setting budgets before shopping. This approach can help avoid overspending and ensure funds are available for emergencies or repairs.
By implementing these hacks, new homeowners can set themselves up for long-term success.
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