“Owning a home is a keystone of wealth - both financial affluence and emotional security.”
~ Suze Orman
So, analyze and research all the aspects of home ownership before heading for a final conclusion.
4 Things to Think of Before Owning a Home
To be able to get the best out of your home loan and you own your dream home, here are some important things to keep in mind.
1. Analyze your budget: Analyze your financial capability and the amount of money and the installments that your home loan will account for to get a clear understanding of your financial position. Try not to get trapped into buying a house that tightens your purse strings to breaking point. Consider all the important aspects, such as property tax, utility bills, maintenance bills, homeowner association dues and other related expenses that might make your expenses skyrocket beyond your comfort zone. After all, owning a palace and living like a pauper makes no sense!
2. Hire a professional: Buying a house requires a lot of information, in the absence of which you can easily be a victim of fraud. This is why seeking professional advice can help you get a better picture of the neighbourhood, legalities, schools, markets, etc, and can guide you in the bidding process to get you the best price possible. Just ensure that your realtor is exclusively your buying agent, one who has your interests in mind and not the seller’s.
3. Current and future needs: Are you buying this home for resale purposes or do you wish to live here? Based on this, you should choose a house that not only is well located but is also well connected to important amenities, such as the railway station, airport, hospitals, recreational centres, shopping centers and educational institutions. It should also have sufficient room and space for kids and guests.
4. Return on investment: With your home loans and savings plans, your equity in a home can be a wonderful asset. But before buying a home, a cost-benefit analysis is a must. This will help you ensure that the amount of your home loan, interest paid, plus other expenses can be recovered with the resale value of the asset. However, even the smallest decision needs cautious planning, such as if you plan renovations, you must think whether this will enhance the value of your investment or just drill a hole in your pocket. Is the value of the property going to increase with time or is this are reaching saturation? How long do you plan to stay in this home to allow the investment to grow and make profits? Once you think on these lines, your asset will fetch you benefits.
But, before you finalize your house, make sure you personally inspect the area, locality and research about the credibility of the real estate owner. Learn more about home loans too before applying for one.