There are factors you need to look at before you buy a home, and for developers and investors, you need to read this as well as you will need to know all of these in order to really make your investments yield good results.
Many would like to own their own home, it is the American dream. But when is it time for you to buy a home? Are you really prepared for such a commitment? A lot of people do not realize this, but it is essential to start with renting homes when you are young. After graduating, you get your first job, and while your first job is always exciting, there is a good chance that you will one day be leaving the company for better opportunities elsewhere. These opportunities could range from being in the same city to a different state, which home ownership could really limit you from leaving. But if you are already at a stage where you do not need to worry much about this, like being able to afford a second home and renting out the old one, or having enough money to uproot your life and starting a new one in a new place, then good for you.
Remember the LCP rule!
Location
You have to consider a lot of things when buying a home, and this will vary if you are single or married and have kids, such as the accessibility of public transportation, the security of the area, how family friendly it is, schools, shops, and other things you might need or want to have easy access to in your life. But the main reason for you to do this is to be able to know if it is a good investment, the location can determine what the price of your hose will be in the future, how easy it is to rent or sell if and when you want to, and how likely it will remain in good condition (Natural disasters).
Condition
Newly build or an existing house, you will need to have a good inspector, as they will determine the quality and condition of the house you are prospectively buying. The idea is simple enough to understand, you don’t want to buy a crappy new house nor a dilapidated old one. Both of these are obviously bad investments that will just drain the money out from your wallet.
Price
Never mind the interest rates or the mortgage, if you are making a good living and have a good credit score you wouldn’t really need to worry about that much. What matters is if it is priced correctly, while of course you have to take account the developer, owner, and realtor making a bit of money, after assessing the two things previous to this, you can pretty much calculate how much the house should cost. You do not want to have a mortgage higher than the value of your home, which will definitely lead to your financial ruin.
So in conclusion, if you want to buy a home just remember these three things:
- A good location for security, convenience, and investment.
- Get an inspector to see if the home is built well, whether or not it is a newly built home.
- See to it that it is not an overpriced poor investment.
