Tired of apartment dwelling? Maybe it's time to check out current real estate values and make an offer on the home of your dreams.
Paying rent can offset the hassles of caring for a home and property. But a monthly rental payment does not provide equity over the long haul. When you leave the apartment, you take nothing with you.
If you're considering buying a home, there are some things to consider before making an offer. While the idea of owning a house on a piece of land can seem exciting and worthwhile, like anything else, there may be some bugs to work out.
1. Are you financially prepared to buy real estate? Becoming a homeowner requires more of an investment than the monthly mortgage payment. You'll need money for a down payment, moving costs, new furniture, property taxes, and house insurance. Figure out a realistic budget before deciding to bid on an available home. Ideally, your monthly house payment should encompass no more than a third, and preferably a fourth, of your take-home pay.
2. Do you have time for maintenance and upkeep? When you live in an apartment or condo, chances are someone else handles the yard work, appliance repairs, and even routine maintenance like painting or plastering holes in the wall. But when you buy a house, the property and its problems become yours alone. Sure, you can call the plumber on a Saturday afternoon to fix a bathtub leak, but you will pay a premium. Generally it's better to do the work yourself if you know how to do it. Make sure your schedule will allow for these tasks without placing undue pressure on you.
3. Is this a buyer's or a seller's market? Depending on the economic climate, it may not be wise to go house hunting if market conditions favor the seller. You want to have plenty of houses to choose from in a price range you can afford. Don't settle for the first one you see, especially if it falls seriously short of your needs or expectations.
4. Are your circumstances stable? If you've had your current job for less than a year, you may want to wait and be sure the situation will continue. At the annual evaluation mention your interest in buying a home and see how your supervisor responds. If he or she seems to hesitate in supporting your plan, that may be an indication you should wait a while longer. If your spouse and you are planning to have a child, thereby reducing monthly income, can you afford a house on one paycheck?
5. Do you have moving plans? If one of you is still in college or is planning a career change in a couple of years, you may not want to put down roots in this area by purchasing a home. Unless you plan to stay in the house for five years or longer, chances are you will lose rather than make money in buying a home. Talk to a loan counselor or bank official to find out whether a real estate purchase is a good idea at present.
Buying a house is like having a baby. You see a cute one and want one of your own. But sometimes the desire passes, so give yourself some time to think through the ramifications before setting out on your quest for the perfect home.
http://www.essortment.com/career/readybuyhomer_seoj.htm
