Written by 
- The Savvy Promise
At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.
Every home attracts a particular kind of homeowner. There are the eco-friendly and economical homeowners, the show-offs who go big, and the neighbours who constantly perform some renovation on their home. Some of these traits are good and can increase the value you of your home, but others could wreck any savings you have. Do you know what type of homeowner are you?
The “I bought too much house”
You have finally managed to snap up the home of your dreams. But now that you own possibly one of the most prized assets you realise that it is costing you more than you expected in one way or another. This is a house that has ample space that hasn’t been utilised or it could simply be too much house that has bills that are becoming harder to maintain.
Handy tip: If you are finding it hard to comfortably meet your mortgage repayments or find that there are rooms that you hardly use in your home, it is time you considered downsizing. Your mortgage, tax, and house insurance combined should not exceed 30% of your income. Speaking to a financial advisor can also help you know what your next move should be financially so that you don’t get pushed into the red.
The DIY fanatic
After watching some interesting home renovation programs, you might feel “gung-ho” with your toolbox ready to take on every nook and cranny in your home. Turning your home into a Pinterest perfect home is not uncommon if you are part of the 62% of Aussies that have undertaken some form of renovation to improve their homes.
Handy tip: Before you tackle your renovation project it is vital that you check how long it will take to complete and the costs involved. Always keep in mind that there are some things best left to the professionals such as plumbing and electrical wiring.
The coveter
Let’s face it, you put in the work by researching your current home. It is in a beautiful neighbourhood and looks lovely. However, you glance down the street at other houses that appear nicer. You could also be craving an upgrade because you want to keep up with the Joneses to show that you have got it all together.
Handy tip: Competing with the Joneses will be a sure way to break your finances and possibly get you into debt. For now, you can focus on working your nest into something that suits your taste and your mood. You can add a fresh coat of paint, buy new furniture or declutter your space. Always keep in mind to keep track of your expenses through a budget.
The smart home enthusiast
You like to keep up with the times and try to turn your home into a modern futuristic space. The ease of being able to control your lighting, heating, and electronic devices through a remote or your smartphone allows you to free up more time to do things.
Handy tip: If you are planning to sell your home in future ensure that the upgrades are something that a future buyer will be interested in. Keep in mind that you will need a budget to sustain and update your systems, and always remember to leave electrical wiring to the professionals.
Did you find this page helpful?
This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for home loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.
