Money For Lunch – Is Your Home a Financial Time Bomb?

Is Your Home a Financial Time Bomb?

December 30, 2016 2:08 PM0 commentsViews: 14

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When you’re investing in property, the last thing you need is for financial disaster to be on the horizon. A lot of unfortunate homeowners end up getting themselves into quite severe problems because they didn’t spot one of the several issues that can cause their home to lose them a lot of money in the future.

Don’t fall victim to such financial time bombs. Here are the problems you need to be on the lookout for when you’re decided on home investment options.

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Taxes

So let’s say you’ve bought a nice home at about $500,000. The neighborhood is incredible and the property itself is gorgeous. You’re looking, like all property investors, to sell this later for a huge profit. But you’ve forgotten to check the percentage price levied on it by the city government. Even something as seemingly small as 2-5% will see you paying more than the original purchase price – over time, the costs of these taxes may see you lose money in your investment.

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Upkeep

Maintenance isn’t exactly the sexiest part of home ownership. But if you’re looking to sell a home down the road, then you’re going to need to maintain it! The more expensive a property is, the more expensive it will be to keep it maintained. There are a lot of ways to make this maintenance easier, but cutting corners certainly isn’t one of them. If the upkeep isn’t done correctly, then the value is going to take a huge hit. Plus, you may find yourself having to perform expensive repairs during your time there.

Health dangers

One of the ugliest ways to lose a lot of money is through egregious medical bills. And it’s worth noting that these huge bills are hardly rarities in this country. So it’s important that you ensure your home is actually a healthy home, one that isn’t instilling long-term health problems in you. Of course, if you didn’t build the home, then there are ways to protect yourself if you do suffer health problems due to building errors or external factors. If you suffer problems with your lungs due to benzene exposure, for example, then you can look into filing a benzene lawsuit. This can help cover medical expenses.

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Interest

One of the most common ways in which home buyers lose money is through the interest rates of their mortgage. The vast majority of people can’t afford to buy a home at the upfront cost, so they borrow money from mortgage providers. But if they don’t choose wisely, they may end up having to pay monthly fees that eventually cripple them. Be very careful and explore all your options before deciding on a mortgage provider.

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Energy leaks

You might be surprised at just how costly energy leaks from your home can be. Being energy efficient at home isn’t just a cool, modern thing to do, some fad that will eventually go away: it’s becoming a necessary part of life, both for safety and financial reasons. Thankfully, being more energy efficient is a lot easier than you might think.

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