Five Questions To Ask Yourself Before Deciding to Buy
Perhaps you’ve found a house, or maybe you’ve just started the house hunt, but regardless of where you are in the home-buying process, you need to consider some key questions before you even think about making an offer. Buying a home is a big commitment — financial and otherwise — so take the time to weigh pros and cons.
Here are five questions every home buyer should ask themselves:
Will I own it for at least five years?
The first and most important item you should ask yourself before you consider buying any property is whether you will own it for a long time. People buy property in hopes of increasing wealth and five years is about the break-even point for earning appreciation in value above the buying and selling transaction costs. Therefore, if you don’t plan on holding the property for longer than five years, skip it! Renting a home is NOT necessarily throwing money away. Buying and selling quickly will usually leave you worse off financially than if you just held off on becoming a homeowner.
Do I love the home I want to buy?
One of the second most important items is do you love the property? Real estate should be held for the long term, and loving a property should perpetuate a happy enduring ownership. So don’t buy a property if you don’t love it or at least really like or want that particular property. And don’t buy just “to buy” or if someone tells you it is a good idea. Buy what you want, when you are ready, and buy a home that you will proudly boast about to your friends over the years and years.
Can I afford it?
It is more expensive to own...
