Buying a house entails intensive research and planning because it involves a lot things to be considered such as capital costs, long term commitment, and financial sacrifices. In line with this, Trulia enumerates a list of important statistical information that house hunters should know when selecting and buying a house.
Topping the list of stats is the fact that 90% of all home buyers start their house shopping online. People conduct their research on the internet to obtain knowledge about the housing market, pricing standards, location, and vicinity information and other important advices in home buying. They also use the internet to search and compare properties.
Secondly, statistics reveal that people should consider buying a house only if they plan to live there for a minimum of five years. This is especially suitable for real estate investors because homes are long term investments that involve expensive transaction costs. According to Zillow, home properties normally appreciate by 2-5% annually. Thus, it would be more sensible to rent a place or apartment if one plans of selling the house in less than 5 years.
How long a home or property sits on the market is an indication of flaws, which is precisely why a house has not been sold. The house could be overpriced, have major renovation issues, is haunted, has a bad case of history in its previous owners, or sits in a bad neighbourhood among others, that is why no one is interested in buying it.
Buying a house usually involves out-of-pocket costs every month as instalment payment, which can eat a large portion of your budget. Thus having an upfront monthly cost will help one to manage one's finances.
Finally, the borrower's debt including mortgage payments under the new "Qualified Loan" mortgage rules should not exceed 43% of one's gross monthly income. This will help you determine budget for buying a house and to successfully getting a home loan approval.
