Moving is an exciting time in people’s lives. If you just moved, you probably can’t wait to get settled in, explore the neighborhood and make your new house into a home. While your list of move-in tasks are endless, there are certain items that you may want to hold off on during your first year. Post-move challenges can be magnified by jumping into certain home-related endeavors too quickly.
If you’re already making your post move-in checklist, learn which tasks to leave off until after your first year.
1. Don't Rush into Renovating
This is one of the most common mistakes that most new homeowners make during their first year. While it’s understandable that you’re head over heels excited to get started on creating your dream home, full-on renovations during the first year should be avoided for a few vital reasons - your first year in a new home usually comes with some unforeseen challenges. From unexpected repairs to routine maintenance, there’s many expenses that come with moving into a new home, especially if you’re new to homeownership.
if you choose to renovate, not only will you be juggling your routine home expenses, you’ll also be paying contractors, interior designers and dealing with lots of noise and disturbance. In addition, renovating your home can easily cause a spike in your homeowner’s insurance and property taxes due to the value the renovations add to your home. While renovating your home can be beneficial, it’s best left for after the first year in your new home.
2. Hold off on Refinancing
Refinancing is a beneficial option available to homeowners looking to lower their monthly payments or take advantage of the current equity of their home. However, homeowners who rush into refinancing, especially within the first year after purchase, will likely lose more than they gain.
One reason to wait is because it’s unlikely that you’ve built any significant equity in your home soon after purchase. Refinancing is essentially restructuring your existing loan to take advantage of built-up equity and lower interest rates. However, the chances of either of those benefits occurring during your first year are slim. Home equity is gained when the value of your home has increased due to the current market or renovations. Since we already discussed the reasons why you shouldn't renovate during your first year, the latter should not be the case.
In that same vein, it’s unlikely that the interest rates or market value of your property has significantly changed since you bought the property. Refinancing too soon could mean missing out on a lot of cash back as well as the risk of having to pay a prepayment penalty charged by your lender. We recommend consulting a financial advisor before rushing into a process as complex as refinancing.
3. Don't Rush into Renting it Out
It’s not uncommon for people to purchase a home with the goal of turning it into an investment property. However, while this is a smart way to earn additional income, it’s also best left for after your first year.
Renting out a home comes with the additional responsibility of being a new landlord. You will be expected to make speedy repairs as well as attend to the administrative tasks that come with renting out your home. We recommend spending your first year getting familiarized with the in’s and out's of your new house and determining if renting it out is even the most profitable option. Plus, it’s your new home, take the time to enjoy it!
There’s many post-moving must-do’s to keep you busy after a big move. From unpacking and decorating to installing your cable TV, it’s all part of the moving process. However, it’s important to know what to tackle head-on and what to hold off on. Waiting on the tasks of renovating, refinancing and renting can save you lots of unnecessary costs and hassle especially as moving is hectic enough as it is. So sit back, relax and enjoy your new digs and save these 3 R’s for after your first year.
Now that you know what not to do after moving, what about those tasks you definetely should not put on the back burner? Explore SmartMove's week-by-week checklist of crucial must-do's during the first month after a big move.