Buying a home is one of the best financial decisions you’ll make in your life, as long as it’s something you can afford. For one, you don’t have to worry about evictions because you own the property you’re living in. It’s something you can pass on to your loved ones. For another, houses and land tend to appreciate, which means their value mostly increases over time. If you have a villa in a prime location, you could sell it for way more than you got it for in a decade or so.
There are a lot of advantages to buying and owning a house. It’s an important decision with a variety of factors to consider. After all, you’re going to spend a large amount of your savings and income on a home. And unless you’re a billionaire, changing houses can be difficult, so your choice of home is likely a permanent one.
Here are things you should think about when purchasing your residential property.
Your Design Preference
If you’re going to buy a house, why not make it the home of your dreams, or at least as close to it as possible? Look for homes similar to your vision on Google Images or Pinterest. Come up with a house hunting checklist that reminds you of the specific things you’d like to have in a home. These pegs should help you find out if you’re going to buy a prebuilt home or design and build your own. They also assist in figuring out the type of house you want to build.
The common ones include:
- Single-family — These are two-story or bungalow houses that have more than two bedrooms and bathrooms, just enough for one family. These are often located in the suburbs, where there’s more space for privacy and personalization.
- Town house — Also known as a “townhome,” this type of house is individually-owned but shares a wall with another dwelling. This is great for families who want to live near the city but want to have more space than what an apartment or condominium would offer.
Your Preferred Location
Apart from the design of your home, you should also consider its location. If you’re going to buy a house, you might as well make sure that it’s near your job or good schools for your kids. This factor also depends on your preferences. If you want to have easy access to your office, a townhouse in the city is a great option. If you want to have a quieter and more private home life and don’t mind the long drive, look for a house somewhere in the suburbs.
Your Job Security
Unless you have millions of dollars in savings, it’s difficult to buy a house in full. The average American needs to get a home loan to be able to afford to buy their own home. While a mortgage makes it more manageable to buy property, it also requires you to make regular monthly payments. As such, it’s important for you to have consistent income enough to cover your mortgage fees, utilities, food, and other needs.
A rule of thumb that financial experts often give clients is the 28% rule. This states that you shouldn’t spend more than that percentage of your monthly income on your home loan payment. For example, if you make $5,555 a month (average salary in the U.S.), you shouldn’t pay more than $1555 on your mortgage fees. This gives you leeway to spend your income on other essentials.
Your New Home’s Condition
This isn’t much of a problem if you’re planning to get a pre-sell condominium unit, you don’t have to worry much about this. Developers often inspect new properties thoroughly before they turn them over. If you’re buying a home from another owner, however, you may have to hire a professional inspector to spot possible problems. This way, you can find deal-breaking issues before you close the deal.
And if you do end up buying the home, at least you can call contractors to repair those possible problems immediately.
Your Real Estate Agent
Your real estate agent is your partner in getting the home of your dreams. As such, it’s important to hire someone who is professional and understands your home preferences completely. Ask for recommendations from family and friends and search for nearby real estate agents online.
Make sure to check review sites to see if they provide satisfactory services to clients. Don’t be afraid to call and interview them to see if they have a license and if they can provide references for you to call as well.
Buying a home is one of the most important and expensive decisions in your life. As such, you should make sure that you cover all the bases before you close the deal. Take these factors into consideration and you’ll be moving into the home of your dreams in no time.