7 Factors to Consider Before Purchasing a Home

April 11, 2023by Sterling Homes0

If you’re looking to upgrade your financial status, you should consider purchasing a property as this is one of the biggest financial decisions anyone can make i.e., investing in real estate either by purchasing a land, a house or a business space. Although owning a home gives a sizeable investment, it sure comes with a big cost. 

Choosing to own or rent a house depends on your financial situation, lifestyle and personal goals. However, both provide you with a place to live. Although renting provides flexibility to move whenever you wish and without affecting your job as you can choose to work and live anywhere, it provides you with predictable expenses, you can be faced with sudden eviction by your landlord, increased rent rate without prior notice, paying taxes for your landlord, these aforementioned disadvantages is why you should consider owning a home.

Advantages of Owning a Home 

Owning a home comes with numerous benefits such as;

  1. Stability to you and your family at large

You do not have to worry about moving out or changing schools and this comes along with job security. You can settle in knowing it’s your home

  1. Pride of ownership.

Owning a property brings about a sense of pride because it is an achievement that should be celebrated. Afterall, it takes a lot of effort to achieve one’s dream.

  1. Financial freedom and long-term financial security

Owning a home brings about equity and if properly used, can be a major asset in achieving your plans and even overcoming potential financial problems or pending debts.

  1. Privacy

Privacy is a major issue when renting a house, you tend to have neighbors and complete strangers being in your everyday business and sharing spaces with noisy Neighbours. Having a home provides you with the maximum privacy for you and your family at large. The kids are less exposed to sexual predators and if you will be renting a part of your house, the tenants will have to conform to your rules. It’s your property.

  1. Space

You have enough space at your disposal when you own your home unlike rental apartments with little storage space. You get enough storage space to organize your belongings.

6.Control over the property 

You are not limited to a particular style or decoration as a homeowner unlike rental apartments where you’re restricted to a particular design or taste. You have the freedom and opportunity to create an environment that suits your taste and desires which can in turn improve your home by adding value to your home and attracts buyers when you wish to sell.

 

 Factors to Consider Before Purchasing a Home.

Purchasing a home either as a person or a family is a critical financial decision, therefore, it is wrong to buy a house you’d dislike on the long run as it takes a lot to pull resources together to get the property and this is why some factors should be put into consideration before purchasing that property. These factors are grouped under two categories, which are:

  • Economic factor and
  • Physical factor

Take note that both factors are dependent on each other, so both factors should be put into consideration without leaving anyone out as this may make the other insignificant.

ECONOMIC FACTORS

The economy should be put into consideration as this is a very crucial part of one’s finances and if financial decisions are not taken into consideration may affect your income and budgets. The economic factors to put into consideration are listed below.

  • Budget/ Affordability

The big question here is ‘can I afford my dream house’? Ask yourself if your dream house is affordable, opt for a more affordable house with reduced maintenance rate. Consider loan offers that wouldn’t want the same house as a collateral. You wouldn’t want to live in your dream house, yet struggling to pay off loan.

  • Payment Plan

If you can’t afford the money all at once, you can always opt for a payment plan involving down payment as well as subsequent payment plans for a period of time. Remember not to make an agreement that will not favor you or that might eventually become a burden to you. Also consider your financial state.

  • House Value

This involves the prospects. Look into the future before purchasing a home, check if the value of the house will increase or decrease in years to come. You might need to sell your property to cover for some financial lapses or you probably might need to change environment and if the house doesn’t fit into the trends at the moment, the house may be devalued, and you may experience difficulties selling the property and on the long run you risk the chance of losing your investment.

  • Insurance Plan

Disasters are not planned but they happen anyway, and nothing can be done about that as they are unpredictable, and this is why your property should be insured. Choose an insurance plan that will not weigh you down. The insured are safe.

                   

PHYSICAL FACTORS 

These factors involve appealing sights or tastes that bring about satisfaction. These factors represent you and your taste. They are:

  • Location

It’s best to be decisive about where you want your house to be. Location is a major part of your everyday life and that of your family at large as it affects your job or school. When buying a house, consider a location closer to your workplace, good school, grocery store, shops, market, hospitals as well as good network coverage

  • Community or Environment 

Understand the environment you choose to get your house, the security and vigilantes should be your first priority, the residents interactions, check for hostility amongst residents, check if it’s a quiet or noisy environment. Ensure not to buy a house in a hostile environment or community.

  • Style and Size 

Do you want a bungalow or a Storey building? A condo style, terrace, farmhouse? Be decisive.

Also, consider the size of the house you are getting, if you have a large family or you entertain sleep-over visitors, a larger space should be considered.

CONCLUSION

Considering the substantial hike in prices of houses in recent years, one would wonder if owning a home is worthwhile. However, irrespective of all the hassle involved in acquiring a property, buying a house is one of the best investments anyone can make, this holds true for both long-term portfolio and your quality of life. Buying a home provides a sense of reliability unlike being at the mercy of landlords, it provides total control over the property.

Owning a home prepares you for retirement because you’re presented with the opportunity to save and reinvest in a new home or other investment properties which leads to financial stability. You can use your home to build wealth by renting it out and if the above listed factors are put into consideration, your dream house will be yours without hassle.

 

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