Pros and Cons
This is for those first time home buyers. Here are the pros and cons to weigh to know when you’re ready to buy your first house. You’ll know it’s the right time. Some things to consider, you wouldn’t even be reading this article unless you knew the benefits of owning a home. Having your own yard, your own garage, or having privacy and not having people above you that stay up all night and stuff like. Similar things may be you haven’t considered is that face that you’ll be building equity in your home. You know with an apartment you’re paying rent every month and you just never see that money again. No one is ever going to give that money back. If you’re buying a house you’re paying a monthly payment to purchase the home. That’s definitely more money spent than an apartment, but you have the option of hopefully getting that money back if you sell in good time. If you sell your home at a higher price you know you could be just getting some of your money back that you put into it because property values have risen and now your home is worth 30 to 40 to 50 grand more than it was a few years ago and you’re able to pocket some money to move forward into maybe your next purchase or perhaps you know you want to live in in the house for awhile and then you decide to rent it out and you’re getting residual income from someone else. They are basically paying your mortgage for you so there’s several reasons on that and that it would be a good idea to possibly purchase a home and another consideration or interest rates. Interest rates have been historically low for a few years now and they’re still strong in the beginning of 2018. When I wrote this article it was still a great time to buy while interest rates are low. Consider if you plan on buying and in the next few years they don’t project that they’re going to go any lower. In fact, summer forecasting is going to rise. So that makes it a great time to buy.
You also have the freedom to do what you want with your own property. With an apartment you may not be able to paint or change the light fixtures or you might not be able to have the freedom to do what you want, but in a house you can have a garden in the back. You can do a lot of things that you want to do. Some of the things that you might want for your own taste will actually help you sell the home at a higher price whenever you do go to sell and make your house more sellable. So on the flip side of things you know that some of the positive stuff that’s exciting to think about you know in your own home and some considerations I won’t say they’re drawbacks because they’re not necessarily, but when your AC goes out then you are responsible. You don’t get to call and say: Hey can you fix this right now? You have to you know that you have to make a call and you have to pay for the repairs to be done. With anything big like natural disasters your home will be covered with your homeowner’s insurance, but you’ll have to pay your deductible.
So that’s another discussion, how much does that cost look like? Does it cost more to have homeowner’s insurance than it does to have rental insurance? You know, it may be a difference of between $50 to $100 to $150 a month so it may not be as big of a swing that you think. It might be to cover a whole house for you owning it.
Another thing to consider is job stability. When you own your own house you don’t have a choice to just get out and move on like you do with leases. You own the house and you’re responsible and it’s really hard on your credit if you’re missing payments. You do stand the chance of going into foreclosure so that’s one of the more serious things. Now if something like that was to happen then perhaps you could rent out the room to a friend or family to help you to help you pay your mortgage. You can get creative and rent out your house and move out for awhile so that someone else is paying that mortgage for you, if you’re able to charge enough rent.
You know you do have a big debt that you’ve got to be aware of and responsible. If you think that your job may be taking you somewhere else that might not be the right time to buy if your job has the potential to move you around the country.
If you have to sell right away that may or may not be a good option for you. Some companies offer relocation packages to where if your house doesn’t sell in a certain amount of time they will purchase it and then sell it for you. Some companies offer incentives to help you move your stuff so it may not be as big of a thing. I see those deals all the time where someone is moving somewhere else, but you just want to be aware of that. It’s an option so be aware of what that looks like for your company. Is your company going to compensate you for a move like that?
Hopefully these few tips are going to help you. You will have to explore this a little bit more and then fill free to send me a message. I’m happy to talk through this a little bit more and maybe hear more about your specific situation and help you figure out if buying is for you. In a lot of cases if you’re renting a house already or some of these apartments you’re pretty close to paying what it would be for a mortgage payment anyway. I’m happy to put you with the lenders that I see to help you see what your payment would look like. This will tell you if it’s in your price range. Hope to talk to you soon!