Good afternoon. Even though today is a Holiday, I was working in the office and raking email. One of the letters was titled "We bought an apartment, but there is not enough money for repairs." Became interesting.
It turned out that our reader is not very inclined to draw up financial plans and he took out an apartment on credit, not counting future expenses for repairs. Having roughly estimated the cost of the apartment and the cost of the mortgage, he made a deal. Apparently, he hoped to quickly make minimal repairs with his own hands, move into the apartment, put up the bed and gradually, paying off debts, make repairs of a better quality. Well, if he thought about it, he could completely forget about the need for the repair itself, it happens, unfortunately, this happens.
Having become the owner of empty walls, he realized that even the minimum investment in an apartment would amount to almost 10% of the cost of the apartment itself, which he did not expect at all. As a result, our reader lives with his parents and wife in the same apartment, and devotes all his strength to paying off the mortgage (it would be better if he rented an apartment, but that's a different story). Here is such a sad example from life that prompted me to write this article with a simple thought: the cost of an apartment is not only the cost of the walls, but ALWAYS the cost of repairs. If it seems to you that you can afford a good apartment in a new building, this does not mean at all that you can afford to renovate it. So, for example, some people, having bought an apartment for 5 million, make repairs in it for another 5 million. But at least 500 thousand for repairs will definitely be needed. Don't forget to make a financial plan, count your money and live in peace. Happy Holidays everyone!
