Do I have to maintain my home? I mean I’m not going to be there long, so what difference does it make?
Perhaps no one really says this, but many people think it. So why do you have to maintain your home? Well, as with most things in life, it’s mostly about money – both yours and the bank’s. If you just bought your home recently, it’s mostly about the bank and it’s interest in the property. As you get on in ownership, it becomes mostly about you and your financial interest in your home. Here we’ll take a look at why, financially speaking, you just can’t get around the need to keep your home in good condition.
Your House, Your Responsibility
When you signed your mortgage documents, you exchanged a few things with your lender. You both agreed to some things – and even though they frequently go unmentioned, you’re both still on the hook for those agreements. Whether you realize it or not, one of the things you agreed to was to take care of your home while you own it. This is because although the bank has loaned you money to have this home as your own, it’s the bank that’s really on the hook if something happens to it. If the roof leaks, the house loses value; if you default on the mortgage, it’s the lender who suffers the loss. So, when you agree to take the bank’s money, you have also agreed to keep your property in good shape.
Taking Care Of Your Biggest Asset
[pullquote_left]The best reason for maintaining your home is to protect the value of your investment[/pullquote_left]
It’s not just in the bank’s best interest to make sure your home is in the best shape possible. One day that house or condo will be paid off. At that point, you’re on the hook for any losses in value. This means that if you’ve let it deteriorate too much, you won’t have as much equity if you want to borrow against it. And you’ll certainly be left feeling short-changed when you go to sell it. The best reason for maintaining your home is to protect the value of your investment. Plus, insurance is not going to cover you in cases of negligence. This means that if your rotting roof leaks during a torrential rain storm, you might be footing the bill while your more conscientious neighbors collect insurance.
A lot of people think that doing nothing is OK. The reality is that this is a big gamble, because small maintenance issues often balloon into major (and very expensive) repairs over time. A little work now could add up to a lot of work down the road. So don’t chock up a deteriorating home to fate and ignore your responsibility. When it comes to home maintenance there are really only two choices: pay for repairs and maintenance now, or take a bigger financial hit later.[divider]
by +Alan F Macdonald REALTOR® | Copyright © – gimme-shelter.com
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