New Homeowner? A Few Things to Consider

Being a new homeowner is a very exciting time and so is the chance to splurge! It's very tempting to want to purchase all new furniture and decorations for your new house, but it is actually the time to be practical. After the expenses of your down payment, closing costs and moving costs, much or your savings has been depleted and even with the new homeowners tax credit, there are still some projects to consider before re-furnishing your entire house!

7 Smart Steps Every New Homeowner Should Take
By Amy Fontinelle of Investopedia

1) Don't overspend on furniture and re-modeling- Think of the new monthly expenses that will accrue as a homeowner; trash, water, snow removal etc
2) Don't ignore important maintenance items- It may not be a big deal now, but to fix a problem in the beginning is cheaper and safer
3) Hire qualified contractors- You may think that you can do it yourself, but to hire someone more experienced and qualified could save you time and money in the long run! The fix or problem is less likely to be an issue in the future if done correctly the first time.
4) Get help with your tax return- You may have done your own taxes in the past, but as a homeowner there are several deductions you may be eligible for. An accountant will be able to maximize your tax return.
5) Keep receipts for home improvement- If you save your receipts from improvements on the home, you can use these costs to increase your home's basis, which can help you to maximize your tax-free earnings on the sale of your home.
6) Don't confuse a repair with an improvement- If you move into a house and have to fix a few broken things, that is considered a repair... not improvement. Yes your house will be worth more after those repairs, but the IRS considers repairs to be part and parcel of homeownership — something that preserves the home's original value but does not enhance its value.
7) Get properly insured- There are several different types of insurance to be purchased when owning a home. Besides the mandatory homeowners insurance, there are other things to consider such as life insurance, disability, and excellent car insurance.