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5 Hidden Costs of New Homes All Buyers Should Know

5 Hidden Costs of New Homes All Buyers Should Know

Buying a home is a daunting prospect for many, but it is a well-known truism that it is better to buy a home than rent one. When you rent a place, you are just throwing money away while buying a home is an investment that will hopefully pay off.

But that comforting logic starts to fall short when you consider the hidden costs of owning a home. Just as an individual moving out of his parents’ home must deal with responsibilities he never considered before – like cooking – a homeowner must consider additional costs and expenses that he did not have to worry about when renting. Here are five such expenses to consider and advice on how you can reduce their cost.

1. Home inspections

The first hidden costs show up before you even close a deal. You can take a look at the house all you want beforehand, but many lenders will require you to hire a professional home inspector before you sign. Even if the lender does not, you should hire one anyways. A professional home inspector can make sure that your home does not have any sudden surprises such as poor wiring or a termite infestation, and require that the seller fixes those problems.

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Hiring a professional home inspector can cost a couple hundred dollars, but it can save you a great deal and prevent you from buying a faulty home. Just be prepared to eat the initial expense.

2. Closing costs

You inspected the home, found that everything is good, and have your offer accepted. Then you find out that you have to pay an additional few thousand dollars up front in the form of closing costs. Closing costs are additional fees such as escrow fees, attorney fees, and other expenses that are usually on the buyer. Zillow states that the average buyer pays about $3,700 in closing fees.

While it is not possible for a buyer to completely avoid these costs, it can be lowered. Shop around with multiple lenders to try and get the best deal on your mortgage and ask if the seller may be willing to cover some of the costs.

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3. Moving

You may be able to get out of moving expenses if you have a wide cadre of friends willing to help you out and if your home is nearby. But the odds are that you are going to have to hire a moving company. If you rely on a professional moving company, then the average cost of moving out of state is over $4,000

If you are moving a long way and want to budget, then you can lower the costs by making sure you are only moving the essentials and possibly taking care of the move yourself with a U-Haul truck. But be prepared to pay a few extra thousand dollars for a clean move without chaos.

4. Maintaining your home and yard

One of the biggest changes towards owning a home is the fact that when something goes broke, it is on you and not the landlord to fix things. And there is always something that needs to be improved or fixed.

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You may be willing to mow the lawn and take care of the yard work yourself. However, that still entails the cost of purchasing the necessary equipment yourself as well as the time needed to mow the lawn and so on. Then there are other expenses such as fixing your heating, air conditioning, and plumbing. While it is possible to handle issues like this if you really know what you are doing, it is just as likely that you burst a main and lose far more money in the resulting repair costs.

You do not want to skimp on home repairs if you want to uphold its value, so budget a certain amount of money every year for repairs. There are a few guides for how much to save, but you should generally be looking to save something around one percent of the home’s value every year.

5. Property Taxes

Death, taxes, you know the saying. But what you may not know is that your mortgage’s monthly bill will also account for property taxes and homeowner’s insurance. This is especially true if you’re looking to earn an investment with a 1031 exchange property. If you use an escrow account, which is required if your down payment is less than 20 percent of the home’s value, then you don’t pay your property taxes directly. Instead, you send your money to a mortgage company who pays your taxes for you. And there is also the scenario where you can be hit with a payment for a couple months’ worth of property taxes right when you move in.

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Dealing with property taxes can be incredibly confusing and varies from area to area. The best advice is to be prepared and talk with your mortgage company about how much you will have to pay as well as any potential surprises.

Featured photo credit: Moyan Benn via flickr.com

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Last Updated on November 18, 2020

50 Habits of Highly Successful People You Should Learn

50 Habits of Highly Successful People You Should Learn

If you’re like me and really into self-development, you’ve probably read many of the thousands of self-help books out there on the market. But also like me, you probably find all the information a bit overwhelming.

That’s why I wanted to do the self-less task of taking the most important, life-changing lessons I’ve drawn from these books and condensed them into 50 key points.

Here’re 50 habits of successful people you should learn:

1. Believe It to See It

Our minds tend to focus on what’s happening around us and refuse to see what could happen. Only when you trust in what’s possible and dare to dream big, big things can happen for you.

2. See Problems as a Wonderful Gift

While others only see problems and give up, successful people use the problem as a lesson to find improvement in themselves or the task at hand.

3. Keep Looking for Solutions

Even if they’re knee-deep in problems, successful people will still put all of their focus on finding solutions.

4. Remember It’s All About the Journey

Successful people are conscious and methodical in creating their own success. They don’t sit around doing the bare minimum, hoping success finds them.

5. Feel the Fear and Do It Anyway

There’s so much fear on the road to success, but instead of letting that fear control and limit them, successful people do a good job of just forging ahead regardless.

6. Always Ask Productive Questions

It’s all about asking the right questions. Successful people make sure they are questions that will elicit information for a more productive, creative and positive mindset moving forward.

7. Understand the Best Waste of Energy Is Complaining

Successful people know that choosing to see the negative side of things will only create a useless and unproductive state.

8. Don’t Play the Blame Game

Taking responsibility for actions and outcomes is a form of empowerment that you can build your success upon. While the act of blaming others or outside circumstances takes this empowerment away from you.

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9. Maximize Your Strengths

Not every successful person is simply more talented than the rest, but they do use what they know they’re good at to achieve more successful results.

10. Be in It to Win It

Successful people are busy, productive and proactive. Instead of sitting around over-thinking and over-planning a great idea, they just take a step towards it no matter how small.

11. Know That Success Attracts Success

People who are successful surround themselves and seek out like-minded people. They understand the importance of being part of a team and forge win-win relationships.

12. Actually Choose to Be Successful

Dreaming big is a massive part of being successful even if your dream seems impossible. Ambition is a mindset that needs to be a daily conscious choice.

13. Visualize, Visualize, Visualize!

You’ve got to see your success in your mind’s eye even before it comes. Successful people clarify and get that certainty about what they want their reality to look like rather than being mere spectators of life.

14. Be a One-Off Original

Successful people look for what’s working and then create a unique spin on it. Imitating only regurgitates other people’s ideas with no originality.

15. The Perfect Time to Act Is Now

Waiting for the right time to act is basically procrastination wrapped up in an excuse. Successful people know there’s never a perfect time so they may as well just do it now.

16. Keep Learning, Keep Growing

Continuous learning is the key to a successful life. Whether it’s academic, being a student of life or actionable learning, it’s all about expanding your knowledge and personal development.

17. Always Look on the Bright Side of Life

Successful people have the knack for finding positive aspects in all people and circumstances no matter what.

18. Having a Bad Day? Do It Anyway!

We all have bad moods but it shouldn’t be an excuse to stop everything. Giving into a bad mood just stop-starts your life, slowing success way down.

19. Sometimes Risky Business Is Needed

Calculated risks are a must for success. It’s about weighing the pros and cons while moving forward with that element of trust.

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20. Accept Challenge All the Time

Dealing with problems head-on is a must to be successful. Successful people also face challenges in order to improve themselves.

21. Make Your Own Luck

In the mindset of a successful person, there’s no such thing as ‘luck’ or ‘fate’. They take control to actively and consciously create their own best life.

22. Ignite Your Initiative

While many people are reactive, successful people are proactive – taking action before they have to.

23. Be the Master of Your Emotions

Being effective at managing emotions is key on the road to success. That’s not to say successful people don’t feel like we all do, but they’re just not slaves to their emotions.

24. Champion in Communication

Consciously working on effective communication skills gets anyone closer to success.

25. Plan Your Life Strategically

Successful people’s lives aren’t a clumsy series of unplanned events and outcomes, they methodically work at turning their plans into a reality.

26. Become Exceptional at What You Do

To become exceptional, you typically have to do things that most won’t. To become successful, hard decisions need to be made and acting on them is crucial.

27. Choose to Live Outside of Your Comfort Zone

While many people are pleasure junkies and avoid pain and discomfort at all costs, successful people understand the value and benefits of working through the tough stuff that most would avoid.

28. Live by Core Values

Successful people firstly identify their core values and what’s important to them, then do their best to live a life that reflects these values.

29. Realize Money Isn’t Everything

Money and success are not interchangeable and the most successful people understand this. Putting money on a pedestal and equating it to success is a dangerous mindset to have. Success comes in many forms.

30. Don’t Get Carried Away

Successful people understand the importance of discipline and self-control and as a result they are happy to take the road less travelled.

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31. Self-Worth Is Not Tied to Success

Successful people are secure. They do not derive their self-worth from what they own, who they know, where they live or what they look like.

32. Kindness Breeds Kindness (And Success)

Generosity and kindness is a common trait among long-term successful people. It’s important to take pleasure in helping others achieve.

33. More Humility, Less Arrogance

Successful people are humble and happy to admit and apologize for mistakes. This is because they’re confident in their ability. They are happy to learn from others and happy to make others look good rather than seek their own personal glory.

34. Change Opens New Doors

People who are successful are adaptable and embrace change, while the majority are creatures of comfort and habit. They are comfortable with, and embrace, the new and the unfamiliar.

35. Success Requires a Healthy Body

It’s not just how you think, it’s about how you show up for success. Successful people understand the importance of being physically well, not for vain reasons but because being in tiptop condition creates a better personal life for success.

36. Laziness Just Doesn’t Exist

Successful people are never considered lazy. Yes, they can relax when they need to, but working hard is their game.

37. Resilience by the Bucket Load

When difficulty strikes, most would throw in the towel, but successful people are just warming up.

38. Feedback Is Just Another Chance to Improve

How people react to feedback determines their potential for success. Being open to constructive criticism and acting on it to improve is most seen in those who are successful.

39. Your Vibe Attracts Your Tribe

If people are hanging out with toxic and negative people, then they need to take a look at themselves. Successful people hang out with others who are positive and supportive.

40. Can’t Control It? Forget It

Successful people don’t invest time or emotional energy into things which they have no control of.

41. Swim Against the Tide

Successful people are not people-pleasers and they don’t need constant approval from others in order to move ahead.

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42. Alone Time Is Valuable Time

More self-worth means being more comfortable with your own company. Successful people are more happy and see the value in spending time alone.

43. Self-Standard Is Higher Than Most

Everyone has a choice to set high standards for themselves. Successful people do this, which in turn produces greater commitment, more momentum, a better work ethic and of course, better results.

44. Failure Isn’t Rationalized

While many use age, health, lack of time, ‘bad luck’, or lack of opportunity to explain away their failure, the key to success is finding a way to succeed despite facing these challenges.

45. Down Time Is an Important Part of a Routine

Having an off switch and taking time to do things that make them happy is a common trait of a successful person. Take a look at here The Importance of Scheduling Downtime.

46. Career Isn’t Who You Are, It’s What You Do

Successful people know their career isn’t their identity. They are multi-dimensional and don’t define themselves by their job.

47. Be Interested in Only the Path of Resistance

While most people look for the easiest way or the shortcut, successful people are more interested in the most effective way. They look for the course of action which will produce the best results over the long term.

48. Follow Through

Many spend their life starting things that they never finish, but successful people get the job done. Even when the excitement and the novelty has worn off they still follow through and finish.

49. Invest in All Your Dimensions

We’re not just physical and psychological beings, but emotional and spiritual creatures as well. Successful people consciously work at being healthy and productive on all levels.

50. Put Your Money Where Your Mouth Is

To obtain success, it’s important to practice what you preach. Successful people don’t talk about the theory, they live the reality.

So there you have it, a summary of what I’ve learned from self-help books. But of course, you need to start taking actions so you will get closer to success too.

Bonus: 5 Bad Habits To Quit

More About Success

Featured photo credit: Juan Jose via unsplash.com

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