The most important part of buying a home begins before you even start looking for a home– there are vital questions you must ask yourself before beginning your journey as a homebuyer.
Can I afford this property?
You never want to over-extend your family’s finances or end up taking on a mortgage that doesn’t leave you enough wiggle room for unexpected expenses or disposable income. Make sure that you have a monthly budget in mind before going to look at properties that may be beyond your means. As a rule of thumb, housing costs should account for no more than 20-30% of your household income.
Is this neighborhood going to add value to this property?
We’ve all heard “buy the worst house in the best neighborhood,” and with good reason! Your neighbors’ properties also affect the value of your home. If you can find a home in a great neighborhood then you’re well on your way to finding an ideal property.
Are the schools in this neighborhood the best for my children?
Always think ahead. Maybe you have children already or maybe the possibility of having children is in the distant future. Regardless, school systems are likely important to you and to the next buyer of your home and can be a major deciding factor in the home buyer’s decision-making process.
How much are the property taxes?
“Nothing is certain except death and taxes.” Paying property taxes is part and parcel of being a homeowner. Make sure you factor this cost into your yearly budget.
Is this property really a good investment?
Take a look at the total package, consider all the variables, and make sure that the property you’re going to buy is an overall good investment and will likely increase your wealth over time. A home is more than just a place to live– it is an asset that can build your family’s net worth.