While it may initially appear simple and exciting, buying a home isn't that easy. PJ Wade explains in Realty Times that home buyers are faced with hundreds of tasks which must be decided on at the same time, and with very short deadlines. Melanie agrees and writes in her article in Feex that it is one of the biggest decisions one makes in life. It is not just a chunk of money that is required for the upfront or down payment, but there are so many other things to consider when purchasing a house.
Wade identifies seven insights to come up with a sound decision for your new home.
1. Investment: Know the value-appreciation potential of the property
This perspective is important because it shows current value deficits. After paying off the mortgage with its thousand-worth of interests, maintaining and improving the property over the years ahead, you will surely want to recover these costs and make a profit out of it. Location is key element to resale value. The best way is to buy the least property in the best neighborhood you can afford.
2. Lifestyle: Identify lifestyle values to reinforce
If you want to spend your time, money and energy to accumulate stuff, then square-footage, lots of storage, and a bedroom for every family member may be essential. But if you want to go beyond materialism, then you may focus on highly-functional interior design, the surrounding community, local amenities and green spaces. Check the neighborhood before you start looking at individual homes.
3. Benefits: Know how you expect ownership to benefit you and your family
Quite related to No. 1, some buyers may choose locations that are near schools over those that are adjacent to work. But make sure you are able to compare the cost of alternatives such as prioritizing "star amenities "offered by private schools over the proximity offered by neighborhood schools.
4. Time Management: Learn how your real estate should support income earning
Evaluate the value of buying a larger home further from city center and the expense of commuting over the option of finding a house in the urban areas. Find out the net in your salary after deducting the cost of commuting. The calculation of hours the distance will take from your family, interests, health and fun is a major factor to decide on.
5. Property Management: Consider the time and money required to maintain and regularly modernize your property
Home features like a garden, a large lawn, bigger roof, more windows and relatively a larger home all entail bigger cost to keep up and improve. The annual cost of maintenance and increasing expenses should also be considered when preparing the budget for a new home.
6. Borrowing: Determine how much the cost of borrowing will add to the overall cost of home ownership
Mortgage interest and related costs are expenses related to borrowing. They can be expensive enough to make you house rich, but cash poor. It's actually your choice if you know your earning power is on the rise to financially stretch for a dream home.
7. Backup: Find reliable, accurate, unbiased answers to your questions during the buying process
Google won't be able to help you much when trying to answer your questions in the home buying process. You have to find a real estate professional with the knowledge and experience relevant to the locations and type of real estate you are interested in. They will know the complete answer or know how to get it.
