If you are in your twenties or thirties and are in the process of buying your first home, make sure that you think about the long-term potential of your home, not just the short-term potential. Here are a few things you should think about before you purchase your first home that will benefit you down the road.
Consider How Long You Want To Stay In Your Home
The first thing you need to think about is how long you want to stay in your home. Are you planning on living in your home for a few years and moving on? Are you planning on having children and raising them in your home? Are you planning on moving your elderly parents into your home in the future?
If you are just planning on staying for a few years, you will not need any extra space. If you are planning on raising kids or moving in your elderly parents someday, then you'll need a place that has additional space to expand.
Consider Who Will Want To Purchase Your Home
Next, you need to think about who will want to purchase your home even before you buy your new home. If you are purchasing a big home with lots of bedrooms, is it in a neighborhood with good schools where people would like to raise a family? If the schools are poorly rated and the neighborhood is unsafe, you'll have to cross potential buyers with families off your future buyer list.
The same goes with a small, one bedroom studio apartment or house. Is it located near the cultural center of the city? Is it in a neighborhood with a lot of younger people? Is it in a neighborhood filled with elderly individuals?
The size of your home and the makeup of any neighborhood that you move into will determine who your future buyers will be. If you see your house as an investment that you want to cash in on in the future, you need to think of whom your potential buyers would be and if they would actually be interested in your house and your neighborhood.
Consider Long Term Expenses
Finally, you also need to consider the long-term expenses associated with any home or apartment that you purchase.
You need to find out what the average insurance rate is for the area your new home will be in.
You need to understand the state of your home and any necessary repairs it will need in the upcoming years, such as a new roof, plumbing, wiring or septic tank. A home inspection should be able to determine the condition of your home and give you an estimate of when major repairs will be needed down the road.
If you live somewhere with a homeowner's association, make sure that you read the contract and are aware of all the expenses associated with your membership.
Gathering all this information beforehand will help you have a better idea of the long-term cost of repairing and maintaining your home before you purchase it.
As a young or first time home buyer, make sure you are aware of all the expenses that will come with owning your home and that you have an eye on the potential resale value of your home. Being aware of both of these things will help you purchase a home you really can afford to take care of and will help you purchase a home you can resell when and if you want to. To learn more, speak with your real estate agent.