In this theme on Shelter, we have looked at your dwelling from the standpoint of what you should be paying based upon your income; we have looked at the costs of homeownership, whether you should be concerned about the lifecycle of the real estate market you live in, the types of mortgage products available, as well as where you should spend your money when it comes to your home.
Our homes are more important than ever with the uncertainty in the world, but making sure you are counting the cost before making what is likely the most expensive purchase you will make in your lifetime–will save you a lot of heartache.
So what do you do now that you have this information?
Knowing where you are and what you want, based on where you want to go, will help ensure you don’t make a mistake when it comes to purchasing a home. Following these 5-steps will help you do so;
- Know what your ideal lifestyle looks like: Knowing whether you want a large home for entertaining, a small home that could be a rental at some point, or the home you need based on the season of life you are in, is especially important.
- Know what you can afford: Don’t become house-poor by buying a home you cannot afford. Affording it does not mean just paying the mortgage but also factoring in the taxes, utilities, upkeep, furnishings, and repairs as well.
- Know what you want in a property: just like going to the grocery store (except on a much bigger scale), don’t walk in without a grocery list, as you will pick up items you didn’t actually need and probably spend more than you wanted to spend. So know what location, features, size, and number of bedrooms and bathrooms you want, and don’t buy an obscure property that might be difficult to sell.
- Know the market you want to be in: knowing what the homes in the area you want to be in actually sell for, the typical size, amenities, and areas for lowest crime, best schools, and shortest commutes will ensure you don’t buy outside of the market you know.
- Know the migration patterns of the area you want to be in: knowing whether jobs are moving from your area or to your area is very important in understanding how this affects inventory/supply, prices, and overall demand, as well as the sense of urgency in seeing and placing an offer on a property, might be.
After reviewing this theme and everything that goes into homeownership, you may determine that you’re not ready to own and need to continue renting. Know that there is nothing wrong with this as long as you have a plan!
CTA:
My call to action is to have a plan around your home based upon what you ultimately want lifestyle-wise. Don’t want what you don’t want. Don’t just buy a house that limits your freedom and flexibility because a family member or friend bought one. Buy based upon it being the right decision for you.
