Buying a new home is an investment in your future, but is it the right move right now? There are a few things to consider before taking the real estate market plunge—this is a large investment, and it should never be taken lightly.
1. Location, location, location. Before purchasing a home, be sure to look into the school district. If you have children, it goes without saying that the quality of the school is key to your child’s educational experience. For childless homeowners, schools are still a factor because school quality influences home buying decisions; it has a very direct effect on resale and property values in general, not to mention taxes. Also, think about how close you want to be to work, shopping areas, etc.
2. Financial commitment. Purchasing a home is one of the largest decisions that most people make. It was once expected that every individual would buy a home, but today, that’s not necessarily financially feasible. Real estate is a long-term investment, and your timeline must be considered; if you’re moving within a few years, you might want to rent. Although real estate is a great investment, it’s not a short-term investment. Having your money tied to property might affect your liquidity when you need to move.
“Whatever you decide when looking for your new home, be sure to think about what works for you.”
3. Running the well dry. Most people spend every penny to get into a new home, especially first-time buyers. However, this is not the best practice. Be sure to have a contingency fund for any unexpected costs. Although the home warranty covers most of the house, most of them operate on a prepayment reimbursement plan. Warranty aside, other costs will come up. For example, most power companies require a deposit. If you have money set aside in your home fund right from the beginning, you can add to it as you go for post-warranty work.
4. Love your space. Your new home is more than indoor living—your surrounding outdoor space will provide hours of entertainment for your friends and family. Landscaping your yard for curb appeal is important. If you’re not the hands-on type, however, you might want to consider a home with functional landscaping. Regardless, the front yard adds aesthetic value to the home’s appeal.
5. There’s untapped potential. Visualizing beyond today is key. If there is undeveloped land in the surrounding areas, research the community master plan or land ownership. If you don’t own it, you can’t control it. It would be unfortunate to buy a beautiful home, only to one day have an industrial area built far too close to it. This also applies in the other direction: Taking a risk on an older property with older buildings that are ripe for repurposing might be a smart investment, too.
Whatever you decide when looking for your new home, be sure to think about what works for you. This is your investment—are you ready to invest in your future?
If you have any questions for me or you know someone who is looking for help in buying, selling, or investing in real estate, don’t hesitate to reach out to me. I look forward to hearing from you soon!