Are you pondering thoughts of buying a home? Home ownership is truly the quintessential American dream. Regardless of who you are, I believe there are a few signs that signify you should start seriously considering the option of buying something to call home.
#1. YOU HAVE A STABLE INCOME: If you have job security, you should be considering your home ownership options. I am fully convinced that owning a home is the smartest financial investment you will ever make. If you pay rent, you are spending the money on housing already. You should start building your personal wealth instead of your landlords.
#2. YOU ARE NOT MOVING ANYTIME SOON: If you can safely say you will be living in the same town for a minimum of 5 years, you should buy a home. Historically, you can expect to be in a positive equity situation if you keep a home for a minimum of 5 years. Here in the CRSA, this even applies to those buying a home with little or no money down.
#3. YOU HAVE DOGS, SPECIFICALLY LARGE OR MULTIPLE DOGS: Renting with pets of any kind is expensive. You probably had to pay additional pet rent and nonrefundable fees. Some leases even restrict the breed/size of the dogs and how many pets you can have at the property. The liability of being a pet owner is excessively demanding in a rental situation. Let’s all agree, you need your own place, and your fur babies do too!
#4. YOU LOVE HOME PROJECTS: Tenants get no financial return on their improvements to a home. In fact, if you “improve” a home you do not own, you could be sued and/or financially liable to return that home back to the ugliness you started with! When you are handy or love HGTV-style projects, you really need a canvas for your creativeness. This is called sweat equity in the real estate world, and it actually pays off in the long run, but only for the actual homeowner!
#5. YOU HAVE SOME MONEY SAVED UP: Often, people think they need a large and somewhat unattainable amount of money set aside to buy a home. This is not always the case! There are loads of mortgage options out there. It is wise to have some money saved up no matter who you are, but when you buy a home, you don’t need to have a hefty 20% downpayment for every scenario. The financial side of things will differ for everyone, so it is best to get the advice of someone you trust when you decide to buy a home. Mortgage lending options are so vast with some banks offering 100% loans and minimum downpayment options closer to 5% down.
When you are ready to take your next step towards home ownership, your first direction should always be to talk to a reputable and trustworthy realtor. They will be able to direct you to the right people and answer the questions that are at the forefront of your mind.