A lot goes into a new home purchase. For many people, it is the biggest purchase they will ever make, and even experienced buyers can experience apprehension. There should be little doubt that buying makes more sense than renting. In addition to putting your money in a long-term investment each month, there is the added comfort of owning your own home, as well as significant tax benefits. However, there is a big difference between buying a house and buying the right house. While you can never be fully certain what a house offers prior to moving in, there are some keys that will help with your decision. Use these three keys to help you decide if a home is right for you. Here are the three most important factors when buying a new home.
Affordability.Almost everybody wants to live in the biggest, most lavish home. However, not every buyer has the means to live in a home like this. If you are not financially comfortable in the house, it is not right for you. It can be an eye-opening experience seeing what your purchase dollar gets in the market. It is human nature to slowly increase your budget higher and higher until you find a house you fall in love with. What typically happens is that you are blinded by the house and think you can do whatever it takes to make it work. It is often a different reality once you take ownership. There are several hidden expenses you do not account for but are necessary to run a home. Things like lawnmowers, couches, towels and mirrors all must be budgeted for. If you do not have the residual funds to enjoy the house after ownership, you will regret the purchase. If you stay patient enough, you will find your dream home in your budget and be glad you waited.
Realistic Chance of Improvement. If you find a house you really like, it is easy to shape your opinion of it. It is not uncommon to come across a property that you think in time you can shape and mold into your dream house. Unless you have access to capital and loads of extra time, you will probably not transform your property exactly how you want. A more likely scenario is that you buy on the thought or idea of the property and be left disappointed. It is important that you know your limitations with yourself and the property before you make an offer. With enough money, you can change almost anything with a house, but this is easier said than done. If the property does not offer some upside, you should find one that is more realistic for your situation.
Area. As we mentioned, you can change or update almost anything about a property. The one thing you can’t change is the area. It is important that you are comfortable with almost every aspect of the area you plan on buying in. Many homeowners get used to a long commute but some get beaten down by it and want to move somewhere closer to their employment. The area should offer a mix of short term amenities such as restaurants and nightlife while still providing long time term comfort such as reduced taxes and strong schools. You shouldn’t base your decision on whether or not a trendy new hotspot recently came into town. Even if you don’t plan on living in the property for years’, life has a way of changing your plans. If you are not comfortable with the area you will not fully enjoy the property.
Always start your home buying search with these three simple guidelines. If you are comfortable in these three areas the odds are you will enjoy the house for years to come.