It’s the start of a new year. Time for a refresh and restart. And for many people, that includes time to consider upgrading the small, stuffy apartment to purchasing a home for a growing family. While there are so many options and factors to think about, knowing if it’s the right time for you emotionally and financially are among the most important.
By following a checklist of important factors to consider, you will have a better idea and feel more prepared when that perfect property hits the market.
If you are planning to live somewhere more than two years, buying is typically preferred. Considering the amenities that the community has to offer, school district reputations, proximity to family, daycare, etc. are some important items to think about.
Costs to Owning a Home
Unless you are downsizing from a lavish apartment to a quaint cottage, you are most likely expecting to pay more with a mortgage than with your rent payment. A few additional costs to owning a home include: property taxes, utilities, homeowner’s insurance, maintenance, furniture to fill your new home, etc.
Don’t let it sound overwhelming. Just estimate to the best of your abilities what additional expenses you plan to have (and then add a little extra as a buffer).
Are you still trying to build your equity and saving for a down payment? Renting is valuable if you are still calculating your finance goals and working towards achieving them.
However, if you have at least 20% saved for a down payment and are ready to make the change, you are inching towards being ready to buy.
If you have a growing family or your dog needs more space outside, that is certainly a popular reason for considering a larger living area.
Are you able to work from home? Having extra space to make your home office functional and comfortable allows the work day to seem more manageable.
Real Estate Market
How is the market? What will the market be like when I want to sell? Timing is a huge deciding factor and that is understandable.
While you will figure out from a personal perspective if it makes sense for you right now, leave the market questions for your trusted real estate professional. What does 2021 look like in a nut shell?
While it’s a competitive market right now, those looking to finance are able to capitalize on record low interest rates.