Think Before You Buy
October 15, 2009
When Should I Buy A House?
With this year bringing record lows to home prices, many renters out there are wondering if this is the right time for them to buy. Afterall, the appeal is certainly there. The idea of owning something brings a sense of pride that only home ownership can and you have the possibility of earning equity in the future. This can help fund future retirement, pay for college tuitions and much more.
Today, the dream of home ownership is accessible to more people than it typically has been in the past. However, not everyone is ready for home ownership. There are a lot of things to conisder before taking that first stip towards home ownership. Buying a home can be a great experience, but it is always a large responsibility, so you really need to stop and consider whether or not it’s a responsibility that you’re willing to take on right now.
As you contemplate the many decisions ahead, here are some simple and basic questions to ask yourself as you begin to think about being a home owner:
Am I Ready and Able to Settle Down?
The term “settle down” doesn’t need to imply that you’re ready to be married, have kids, buy a puppy and plant petunias in the yard! It’s is perfectly acceptable to buy a home, live there for a couple years and sell. However, you do need to decide if your lifestyle is condusive to home ownership. Do you travel frequently for work? If so, you might not be home enough to a) enjoy your home and b) keep up on the general maintenance it requires. Speaking of maintenance, are you savvy when it comes to fixing things? As a renter, any problems noticed are investigated and resolved by the landlord. As a home owner, you have to know WHAT to fix, before you can make arrangements to GET it fixed.
Can I Afford a Home of My Own?
Let’s be frank, with today’s prices, it is possible to arrange a mortgage payment that is less than what some people are currently paying in rent. BUT the consequences for failing to make a mortgage payment are much greater than being late on your rent check. You’re credit is on the line. You also have to consider that in most rentals – some portion of utilities are being paid. As a home owner, this will fall on you. Water, sewer, trash collection, gas, electric, etc. etc. In addition to these, see above. Don’t forget about the cost of maintaining your home. What would you do if a seemingly perfectly good water heater breaks? Can you afford to fix this?
The recession and the housing crises have been difficult on everyone. If you’re one of the many people struggling to make ends meet – you should probably hold off for a while. Now, I certainly don’t want to scare anyone away from pursuing their dream of home ownership, but rather make it will be an enjoyable and profitable experience.
If you think you are ready to own a home, GREAT! Do some research. Find a great Realtor and a lender that will work for you. Make sure that you educate yourself on the numerous options out there and what will work best for your situation.