1 minute read
CHECKLIST
Dollars and sense
Home maintenance requires a steady budget. This can mean different strategies between homeowners and renters.
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Daniel Bruschi, principal broker of BHI Realty, previously shared with the Real Estate Journal that the differences in buying and renting lie mostly in costs. Assessing the different expenses and maintenance checks can help residents set aside money in case of an emergency.
Renters generally have less financial burden, maintenance issues and legal worries, with the downfall being that their living space is not their own, according to Bruschi.
“Most renters have less monthly expenditures than a typical homeowner, who would have homeowner’s insurance, property taxes and probably mortgage payments as well, but may also include monthly common area fees, maintenance costs and special assessments,” Bruschi said.
For renters, it is steadier to keep an emergency budget because of the recurring cost of rent money and bills. Whenever a maintenance issue arise, landlords will be able to assist. However, because renters do not own their homes, the money they put in never really comes back to them.
Emergency budgets are more necessary for homeowners because they invest what they put into their home, whether it be mortgage payments or renovations.
“When you buy a property, in most cases, you’re building equity in yourself. Even if you have to get financing and pay a monthly mortgage payment, some of that payment is toward your principle, which is basically yourself,” Bruschi said.
For homeowners, maintenance is likely where an emergency budget is needed most, as anything in a home can break without notice. Budgeting for this can be tricky, as there are several types of costs homeowners have to also keep in mind, like insurance and property taxes. Since owning a home is a long-term commitment, monthly savings can start at a minimum until the homeowner is in a more financially comfortable space. Anywhere between 5% and 10% of a paycheck into emergency savings can go a long way if repeated consistently. p
