Dear Heather

We have just bought our first home. We are hoping to go overseas and get a container full of new furniture, where do you recommend getting it and who do you recommend to bring it in?

First time Homebuyer

Dear first time homebuyer

Whoa … easy now, sounds like you might have been watching too much HGTV!

I understand that turning the key in a lock that no landlord has access to, relaxing in a hammock in your own backyard and painting your dining room bright red, is exciting when you are making the leap from renter to first-time homeowner. Getting swept up in all the excitement is a wonderful feeling, but some first-time homeowners lose their sense of equilibrium and make mistakes that can jeopardise everything they’ve worked so hard to earn.

Don’t be one of those people; take a few moments to ponder these practical concerns that will help ensure that your first home becomes the place of comfort and security that you’ve anticipated.

1. Don’t overspend on furniture and remodelling

You’ve just handed over a large portion (if not all) of your life savings for a down payment, closing costs and moving expenses. Money is tight for most first-time homeowners — not only are their savings depleted, their monthly expenses are often higher as well, thanks to the new expenses that come with home ownership, such as land tax, home maintenance and insurance.

Everyone wants to personalise a new home and upgrade what may have been temporary apartment furniture for something nicer, but don’t go on a massive spending spree to improve everything all at once. Particularly in Bermuda as due to its transient society it has possibly one of the highest-grade second-hand markets in the world.

Even more important than getting your first home is staying in it, and as nice as solid maple kitchen cabinets or brand new furniture might be, they aren’t worth jeopardising your new status as a homeowner. Give yourself time to adjust to the expenses of home ownership and rebuild your savings — the cabinets will still be waiting for you when you can more comfortably afford them.

2. Don’t ignore important maintenance items

One of the new expenses that accompanies home ownership is ongoing repairs, the climate is very hard on properties in Bermuda and regular upkeep is crucial, a stitch in time saves nine, as the saying goes. There is no landlord to call if your roof is leaking or your toilet is clogged. Whilst you should exercise restraint in purchasing the non-essentials, you shouldn’t neglect any problem that puts you in danger or could get worse over time, turning a relatively small problem into a much larger and costlier one.

3. Hire qualified contractors

Don’t try to save money by making improvements and repairs yourself that you aren’t qualified to make.

Your home is both the place where you live and an investment, and it deserves the same level of care and attention you would give to anything else you value highly. There’s nothing wrong with painting the walls yourself, but if its wiring and plumbing that you know nothing about, leave it to the professionals to do. Ask around — sometimes personal recommendations are the best.

4. Keep receipts for repairs

It helps you track how much of your income you need to put aside each year for maintenance on your home.

5. Don’t confuse a repair with an improvement

It’s a good idea to keep track of how much you spend on improvements and when they were done. If you ever decide to resell your home it is useful for the buyer to know what and when the improvements were done and who did them. Ask your agent, which improvements are most likely to add value to your home.

6. Get properly insured

Your mortgage lender requires you to purchase homeowners insurance, which should cover enough to fully replace the property in the event of a total loss. But that’s not the only insurance coverage you need as a homeowner. If you share your home with anyone who relies on your income to help pay the mortgage, whether it’s a girlfriend or a child, you’ll need life insurance with that person named as a beneficiary so he or she won’t lose the house if you die unexpectedly.

Chat to your insurance company about what and how much you will need, you will be glad you did. Bottom line? With the great freedom of owning your own home comes greater responsibilities. You must manage your finances well enough to keep the home and maintain the home’s condition well enough to protect your investment and keep your family safe. Don’t let the excitement of being a new homeowner lead you to bad decisions or oversights that jeopardise your financial or physical security.

•Heather Chilvers is among Coldwell Banker Bermuda Realty’s Leading Sales Representatives. She has been working in Real Estate for 28 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332 1793. Please go on to Heather’s Facebook page — Ask Heather Chilvers Real Estate — to like and share this article