If you own a house, you know that being a homeowner has both pros and cons. Pro: The people screaming upstairs are probably your children and you can tell them to settle down. Pro: You earn equity against your house as you pay down your mortgage which means you can take out a home equity line of credit for various expenses that may arise in your life. Con: Things break, and when you're the landlord and owner, you have to fix them. Con: Mowing your lawn is not always pleasant. Con: Your house is potentially a money pit.
"Wait...what's a money pit?"
We're glad you asked. Essentially, any house is an investment, but it's also a place where you can throw money away at an alarming rate and end up being more in debt than when you started. If you find yourself dumping more money into your house than you'd prefer, check out some of these money pits in your house!
If you own an older house, chances are it's not insulated as well as it could be. We live in a state where we have heat on anywhere from 4-6 months out of the year. If you don't think having a properly insulated house is that important, think again. Not only will fixing drafty/poor insulated walls and ceilings keep your house warmer for longer, it'll save you money by not having to run your heat 24/7. This brings us to our next money pit.
In today's tech world, you are able to purchase smart thermostats that you can set on a timer. Essentially it allows you to heat (or cool) your house only certain times of the day. This may not seem like a huge deal, but if you are a full time employee, we're going to guess that you are away from your house at least 42-45 hours a week. Being able to set your thermostat on a timer and control it from your phone or computer, you'll notice a savings in your monthly heating budget. Trust us. It's worth the investment to upgrade!
If you've ever been in a house with a leaky roof, you know that it's a pain whenever it rains. What you may not know is that each time your roof leaks, you're not only ruining your ceiling but the insulation and frame of your house may be at risk as well. Over time the water will start to wear down the material and could rot and. What was once a simple leak could turn into a major problem that will run you thousands of dollars. Make sure your roof is water tight, and not in need of any new shingles. Fixing a few shingles on your roof is much less expensive than leaving your leaky ceiling until it falls apart.
High Mortgage Rate
Depending on how long you've had your house, take a look into refinancing if you are noticing that your rates are high compared to what's on the market. Mortgage rates will rise and fall as the economy does, so if you bought a house years back and haven't checked out the rates around the area, we encourage you to do so. something as little as a .25% change in your mortgage may not seem like much, but when you add up the months/years, you'll find that even the smallest of discounts will yield big savings.
Too Much House
Depending on what stage of life you're in, you may have a house that's just too much for you now. Maybe all of your kids have moved out. Perhaps you thought you needed more space but realized that it's actually more than what you need. Whatever the case, if your house is too much for you to handle, sell it and find another one! Yes, this is easier said than done, but sometimes downsizing is easier in the long run. It means less upkeep for you, and will more than likely save you some money in the long run.