It cant be ignored that finances are a crucial part of buying
property. Do you have enough money for a down payment? Do you have the right credit? Your
bank will help you with this part of the process, but it is important to understand the
complexity of real estate finances. Not only is it a huge investment financially, but it
is a large commitment with regards to your personal budget. Will you have to alter your
lifestyle? Are your children going to be in college soon? Be sure to consider all aspects
of how the new acquisition will affect your bank account.
Golden advice: Money is important when buying a house. Be sure
to work with not only your bank, but yourself, when deciding if your finances are sound
enough to purchase real estate. It will pay off later and make life much easier on you.
2. Job security
Income is often an underrated factor in buying a house, and job
security is directly linked to income. How stable does your job feel? Even if you feel
good about it, how stable is the company in the market? Do you anticipate having that job
or a job with similar pay five years down the road? These are questions that are nearly
impossible for anyone to answer, but they are issues that must be analyzed. A mortgage is
a serious matter, and one that requires constant payment and monetary maintenance. Aside
from mortgage, there are many other expenses like property tax that come along with real
estate ownership. It can be done, but be sure to consider your job both in the present and
Golden advice: A job provides you with the ability to pay a
mortgage and to cover any other expenses related to the property (often many that are
unexpected). Be sure to self-reflect and take a hard look at your job, both in the present
Buying real estate differs from renting in the obvious way that
ownership is more permanent. You can always sell a house, but its a bigger deal than
breaking a lease. You like the location of your potential home, but how ideal is it for
your current or future family? How advanced is the school system? How is the safety? Is it
easy to travel to and from? Does the location offer the activities that you and your close
ones enjoy? Your satisfaction with the city or town you have chosen is just as important
as the property.
Golden advice: The physical location where you live will be a
place you spend a lot of time. Its important to understand and appreciate the
privilege of choosing where to buy real estate. Talk with your family and gauge the
comfort level of the new area you might reside within. Visualize yourself in the setting,
and go with your gut instinct.
The physical property you are considering should be of value to you as
a buyer. How well is it built? When was it built? When was the roof replaced? Are the wood
floors refinished? Real estate is an industry where a homebuyer should never have to
settle on a price. The price range of a house is too monumental to get the short end of
the stick. There are too many houses on the market to settle and feel like you are
throwing an extra $50,000 on the table. Make sure everything is in order, and updated, in
the property you are assessing. Take your time, and realize that as the buyer you have the
Golden advice: You are the one offering the money, and with real
estate the margin is too costly to be casual. Pick your spots, and make sure the value you
are paying equates with the product you are getting in return.
Buying a house is a key component of the American Dream. Make sure you
enjoy yourself, but at the same time consider all aspects of your decision. Buying a house
is a situation that deserves your full attention. Staying confident and not cutting
yourself short will pay off in the long run, and help you lead a more relaxed life.