We all have hopes and dreams and for many of us that includes owning our own home. Thus, homeownership may be one of the biggest investments on your bucket list. Today we are discussing how to make steps in the right direction to make purchasing a home a reality and the questions you should ask and answer because you buy a home.
The following video is apart of our Finance Friday series. Finance Friday started 7 years ago and continues to provide insight to women and men nationwide.
Taking about the initial steps to Homeownership. #financefriday
Within the video, I discuss key tips that you should ask, please watch the video and let me know if you have additional questions. Secondly, check out these additional homeownership reminders.
7 Questions to Ask Before You Invest in your own home
- Ask yourself if you want to find contractors to complete maintenance work around the house.
- How much yard work and outside work are you willing to do? If the answer is none, then you need to add in landscaping expenses to your monthly costs.
- Next, evaluate the cost of insurance. For instance there is cost associated with home owners insurance, home warranties, etc all of which are on top of your car insurance and life insurance. However, remember many insurance companies do allow you to bundle the related cost.
- Homeownership is an investment. So keep in mind that in order to see your property increase in value over time you will need to put money into the property. For instance, continue to upgrade and remodel the home as needed so it will continue to be desirable.
- Long gone or the days when home owners can bank on their homes appreciating at least 6% above the purchase price. In reality home owners are generally looking at real appreciation, but only about 3 percent.
- If you’re only buying a home as a status symbol or to keep up with “The Jones” there are other investments that can bring in a lot more money and provide you with less stress. In fact, the opportunity cost associated with homeownership can sometimes cancel out some of the money you thought you’d bring in.
- Last but not least, homeownership is not without risk. In order to grow your portfolio and your money you can’t just hide it under a rock and expect to dig up more. Similarly you can’t just buy a home and expect it to increase without some work on your part. The homes value is not in your control so look at these three critical factors when buying, the location, location, and location. Location is key because you need to purchase in a prime real-estate area to see improvements. The school system needs to be excellent and the area needs to have working people who are keeping up the look and feel of the community. So ask yourself at the end of the day when looking to purchase this old. Can I foresee which direction this neighborhood is going in the next 15-20 years.
My goal is not to discourage you from home ownership. Home ownership is great, you just have to buy the right property and make sound and calculated decisions regarding your purchase.
Seven Ideas for Handling Finances Better