The next generation of buyers will be a significant force within the real estate market. More and more millennials are deciding to settle into homes especially as the market remains stable. The question that is often asked is whether or not one is ready for owning a home. Continuing to rent means being left out of the opportunity to invest, however, the lack of maintenance and substantial financial responsibility can be appealing. Premier Downers Grove Realtor Shanon Tully has some perspective and a number of factors to consider before deciding to take that next step into homeownership.
Owning a home is a significant financial commitment. It is probably one of the biggest ones in life. For most, this means settling down. Of course, if you buy a home and then decide that you don’t want such a commitment you can turn around and sell it. However, the time that it takes a home to appreciate just to cover the costs involved with selling is at least five years. Thus, before buying your first home, ask yourself if you are prepared to live in it for at least this amount of time.
Another question to answer before looking for homes to buy is whether or not you are financially ready. How much are you able to put down for the initial payment? What about closing costs? Here is a quick list of potential expenses you will incur just to purchase the home:
It is advisable to put down twenty percent of the price of the home, however, there is down payment assistance available to help with this. Yet, even with programs like these the amount of money you’ll need upfront warrants careful consideration.
Once you purchase a home you will have several monthly expenses. It is possible to own something for around the same amount that you pay in rent, however, this typically refers to your principle and interest on your mortgage. Insurance, property taxes, homeowner association fees, utilities, and maintenance should be added into the mix. Keep in mind that although you may go months without a significant maintenance expense, it is best to save some money each month for this purpose. Before deciding to buy, create a potential budget to determine if your income level can cover the expenses involved.
Another consideration to make before buying a home is whether or not you are prepared for the ongoing maintenance. When renting all you have to do is call the landlord when something breaks. When you own the home, all repairs are up to you. Sure, you can pay someone to fix every leaky pipe, but that adds up quick. It is more likely that you will want to fix a number of things on your own. Upgrades and renovations may also be needed. You may be okay with that old tile when you first move in, but looking at it day after day might motivate you to take a trip to the home improvement store and dig into the project. These are the realities of owning a home. It is well worth the investment for those that are ready to take on the responsibilities involved.
For help finding your next home contact Shanon today!