Friday, October 12, 2018

New Home; New Bills? Surprising Reasons Your New Home Will Cost You Money

When we choose a place to live, we tend to consider the same sort of things:

  • Do we like the house? The neighborhood? Can we see ourselves living there, our family settling in this environment?
  • What is the commute like to our workplace?
  • Can I afford it? Do I need to allocate extra resources to renovate it?
  • What are the schools in the area like?

And so on and so forth - and all are good things to consider. Necessary things; the vitals on the surface of the choice of the place we call home.

Going back to one of those points: "Can I afford it?". Within this bracket, you will think about things like the down payment, the monthly mortgage, and the property taxes. These are, again, the surface elements. But if you dig a little deeper, you will find that your decision about where you live can have other financial ramifications - and you won't even realize it until you're all moved in.

1. It can alter your insurance premiums

This applies to any kind of insurance you might want to take out, including seemingly unrelated things like pet insurance. It's wise to acknowledge your home insurance can change, but everything else is up for grabs as well.

The way that insurance premiums are calculated is done in such a way as to be almost entirely obtuse. So you likely won't know about the issue when you move. You can find yourself still reeling from the cost of moving and suddenly finding your health insurance premium has gone through the roof. This might happen even if you have only moved a couple of blocks across the city; it's impossible to predict.

Insurance rarely locks you into a contract, so be prepared to shop around and switch to another insurer if you have to. If doing so leaves you struggling to pay your bills, then there are still options. For health, services like can help meet the gap between what you can and can't afford. Similar plans are available for all other types of insurance, too - you just have to be prepared to look for them.

2. You can be given higher quotes by tradespeople

If you have got a home renovation project in mind, then you'll contact a tradesperson for a quote. A friend of yours who lives across the city could do the same. Same tradesperson; same company; same job - different prices.

Perception is a big part of how these quotes are generated. Tradespeople aren't just looking at the cost of a job, but trying to analyze how much you can afford to pay. If your new home is more affluent, then you're going to see the price go up.

The only solution here is being willing to haggle. If a price isn't good enough, then say so. It's also worth dropping in a mention of the expense of moving and how you're on a budget for this project - it helps make the point that you don't have an endless money pit!

3. The air quality is worse - to the point of causing health problems

We know healthcare is an expensive thing, and sadly, if you move to a more polluted area then it could rise another few dollars for you. Air pollutants are a major health catastrophe that is already happening, but not in an obvious way. Because no one is inhaling these pollutants and immediately coughing up blood, we've become lax to understand the issues that they pose.

Those issues are substantial. A worsening of conditions affecting the lungs is the primary concern, while you may also find you or your children develop lung problems or allergies. You can find out more about the potential issues pollution causes at - it really is worth knowing. The treatment for all of these fresh ailments is going to need paying for somehow.   

There are ways and means of mitigating the damage. You can only allow your children to play outside at certain times, for a start. Anything around either the morning or evening rush hours should be avoided. You can also look at filtering the air inside your home, either by mechanical means or with plants that help remove toxins from the air.

While maps of pollution do exist and are worth checking before you move, they are not the most reliable of things. They don't see the fluctuations throughout the day and the information is frequently out of date - but it's still worth a look to identify any potential oncoming problems.

None of the problems listed above are going to be serious enough to cause you to want to move. All you can do is make the adjustments you can and do your best - such is the compromise of a new home you love!

Originally published 12/19/16