According to a recent study, almost 8 out of 10 people think buying a property today is a great financial decision. While it might be a good decision for some, potential home buyers need to decide what’s best for you and your situation. Whether you are relocating, just graduated or are a young couple ready to start a life together, many people have asked themselves if it is the right time for them to buy.
Purchasing a home could be the biggest financial decision of their whole lives. There are real life issues to consider before jumping into homeownership. With this in mind, here are four lifestyle and financial issues to consider before you decide if now is the right time to become home buyers.
Home buyers will want to first take in consideration the length of time you plan to be in your next home. By most metrics, a home purchase has been found to generally be one of the lowest risk investments a person can make. But it’s also important to understand that there are costs and fees associated with buying and selling your home.
Investing in a home is very different than investing in the stock market. To get a return on your home investment, home buyers typically need to stay at your property for more than a few years.
If you plan to stay in your home for a short time that doesn’t mean buying isn’t right for you, just that you might not make a significant return on your investment.
Next, home buyers will want to consider your employment status. Do you have a reliable income? Can you afford this large of a purchase?
There are many mortgage payment calculators out there that can give potential home buyers a good estimate on costs but do not hesitate to reach out to a real estate professional to get valuable information beyond just straight economics. You can (and should) consult with a real estate professional well before you decide to move forward in the process of buying a home.
Home buyers will want to take the time to research and uncover important insight into the local market conditions. This is especially true if you need to first sell a house in order to buy your next house.
Local housing markets are constantly shifting. For this reason, arming yourself with the important information needed to make the best decision possible is important. Insight into not only for when to list your home but also how long to expect your house to be on the market and if you’ll need temporary housing between selling and buying your next home all contribute to the process.
Last, home buyers will want to be sure that they are prepared for the additional costs that comes with buying a new home. Look at all of the costs associated with homeownership from taxes to insurance. For renters, figuring out their monthly expense can be as simple as asking about the cost of rent and average utilities.
Home buyers will want to make sure you have all of the information you need to really sit down and weigh your options. When it comes time to buy a new home, the more information you have access to, the better off you will be.