Buying a new home is likely to be one of the largest investments you will make in your life. Particularly if you have been renting a house or apartment, it’s a BIG decision. Sure, you’ve heard that interest rates are favorable and that there are a lot of advantages of home ownership. You can also see yourself living somewhere that more completely fits your tastes and needs; a space that is truly your own.
Still, is this next step really right for you? Here are five questions to help you answer the question, “Am I ready to buy a new home?”
- Do you see value in building up equity on your own instead of continuing to pay rent that only builds up your landlord’s equity? When you pay rent, you are essentially “borrowing” the property you are living in. When you own a home, any money you put into it is an investment into your own future.
- Could you see yourself in your home for more than five years? Buying a new home is a commitment. If you are in an unpredictable work situation or are considering relocating within the next few years, you may want to wait until you’re sure where you will land.
- Do you have taste, lifestyle needs, or a “vision” of your ideal living environment? One of the best things about owning a home is that you get to pick it out! If you work with a builder, you can even design a brand new home specifically around your preferences and budget.
- Do you have a dependable income and enough to cover all of the costs associated with home ownership? In addition to monthly mortgage payments, you will also need to come up with taxes, annual maintenance expenses and money for other expenses.
- Can you handle the additional responsibility? When renting from someone else, you assume that they will handle all repairs and maintenance. When you buy your own property, all of this becomes your personal responsibility. Generally speaking, the newer the home, the less likely you are to have costly repairs. Still, all homes have issues that come up from time to time.
Interested in learning more? Let us connect you with someone on our team –