Dear Heather: My husband and I are ready to buy our first home, but it’s a big step and we are concerned about the responsibilities of home ownership. Do you have any advice? — Ready to Buy

Dear Ready to Buy: The Bermudian dream of owning a piece of the rock is something everyone aspires towards. You should be able to live where you want and enjoy the features of your environment that help you relax, entertain, play, and do more of the things you enjoy without the restrictions imposed by a landlord. That’s the essence of the dream — independence. However, with independence comes sacrifice and your concerns are very real.

The key for most first-time buyers is it’s better to accept that for dreams to come true you have to do the groundwork. Yes, you will be far more independent than you would as a tenant, but you will still have some responsibilities to make home ownership work. Here are the top three responsibilities you’ll have as a homeowner:

Financial responsibilities

You owe your lender timely payments. Paying on time helps you build your credit. With great credit, you can take on more projects such as remodelling, or you’ll be able to buy furniture, cars or other things you want with lower interest rates for borrowing.

Your debts should never be more than 45-50 per cent of your income. If you overextend, you’ll have problems meeting the minimum payments.

Instead, limit the amount of credit you actively use and pay off balances every month. Don’t add new charges until you’ve paid off your balances.

You should also be in a position to save money — which you can do in several ways. You can put money in a savings account, you can pay extra on your principal every month, or you can buy bonds or invest in the stock market, according to your tolerance for risk. You can even put money in a safety deposit box or under the mattress — as long as you are saving rather than overspending.

Common wisdom is to build about six months of living expenses so that you can continue to make your house payments if you lose your job or become ill.

You may need savings for emergencies, or large expenses such as student debt and retirement.

Neighbourhood responsibilities

When you buy a home, your household becomes part of the neighbourhood. You can influence whether or not the neighbourhood prospers or declines simply by the way you treat your neighbours and your home. It’s up to you to uphold or to set a higher standard for the neighbourhood by keeping your lawn and trees trimmed, your home freshly painted, and toys and trash picked up from the entry.

This is the way you can protect your investment and those of your neighbours. It’s one of the reasons condominiums have homeowners’ associations — to protect values by standardising safety and maintenance for the community.

Home ownership is a long-term investment so you need to take care of it. Landscaping, painting, etc, has a cost in time or dollars.

Household responsibilities

You owe yourself and the other members of your household to reward yourselves with the best life you can possibly provide. Buying a new home is a great time to step up your lifestyle and enjoy what your new home and the community has to offer.

Your home should help you be who you want to be. That’s the purpose of shaping your environment. You have control over whether you entertain like Martha Stewart, paint your studio like the next Picasso, or grow a lawn as sleek as the Bermuda fairways.

Choose a home that meets as many needs as you can within your means. Separate bedrooms for the kids may be doable, but you may have to compromise on a Jack-and-Jill shared bath.

This is an excellent opportunity to teach your older children about prioritising, delayed gratification, give and take and winning and losing gracefully.

Make sure the area you select offers amenities that your current apartment doesn’t have. If you don’t have a yard for the kids and the dog, make sure there’s a playground nearby.

You and your spouse may want the prestige of living in a certain area, but if your house payment is too high, you’ll introduce problems into the relationship that you don’t need.

It’s about making choices that make sense. Better to buy a smaller home in a great neighbourhood and keep your marriage healthy.

Now is an amazing time to buy in Bermuda. We are in a “buyers market”, meaning there is high inventory, prices are lower than they have been for ten years and, at the moment, interest rates on mortgages are comparatively low. Now is a great time to take that leap into the market and become a homeowner.

Buy the best home you can that’s within your means and it will see you and your family through years of comfort.

Heather Chilvers is among Coldwell Banker Bermuda Realty’s leading sales representatives. She has been working in real estate for 25 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332-1793. All questions will be treated confidentially.