When it comes to the idea of buying a new home, many people are not sure if it’s the right move for them. Buying a home is a huge investment. That being said, it’s critical to make sure you’re ready to take on such a challenge. And while most estate sales last for three days, Friday, Saturday, and Sunday, estate sales are not usually the best method to buy a home. If you’re considering taking the leap to buy a home, here are some important questions to ask yourself.
- If you bought a home, would you stay for at least five years?
Buying is often the most efficient option if you plan to stay in your home for at least five years. Experts say that five years is the average time that makes you more likely to regain what you paid in transaction costs in addition to generating a return on your investment.
- Can you cover the extra expenses of owning?
Many people miscalculate the actual cost of purchasing a home. Most banks want a 20% down payment, and while the down payment will inevitably be your biggest expense, it’s important to keep in mind that you’ll also need to cover 5% to 6% for commissions and another 1% for closing costs. On top of that, maintenance costs are recurring and can hit you with some hefty bills. This can be difficult to manage, especially if the costs are last-minute and unexpected, but experts estimate an annual maintenance cost of between 1% and 4% of your home’s value, depending on the age of your home.
- How secure is your job?
Before you start looking for new homes, it’s critical to examine your current employment situation. How long have you been there? Is your current salary enough to afford a home? Is there any chance that you could lose your job due to the company going bankrupt or being sold? Are you planning on looking for a new job anytime soon? These are all critical questions to ask yourself before you make the plunge and buy a home. Because a home isn’t something you buy at the store and can simply return if you don’t like it. Once you buy it, it’s yours.
Ultimately, buying a home is one of the biggest decisions you’ll ever make in your life, and it’s crucial to do all the research you can. For more information about luxury real estate, contact Stony Brook.