Many people live the dream of buying their own house for years. They work so hard their entire lives to turn this dream into reality. However, when the time finally comes, they get overwhelmed. Buying a home is an emotional experience, and it’s natural to get nervous or anxious in the process.
It is not only the case with first-time home buyers. Buying a new home can prove to be one of the most crucial decisions for older people and new parents. Your concerns take different forms at different stages of life.
First-Time Home-Owners
As per a study, 44% of the home buyers said they were nervous throughout the buying process. Moreover, every two out of buy respondents described the journey as one of the “most stressful events” in their lives.
The idea of having your own home is so comforting. Perhaps, you have an outline prepared already; the number of rooms, the décor, and the lawn gnome in the front garden. However, a home purchase involves much more; it’s a huge investment, and you have to consider many factors.
- Affordability is the first thing you need to factor. Take into account the overall expense of buying a home, including PITI – principal and interest on the mortgage, property taxes, insurance, and maintenance cost. Spending more than 30% of your annual income on these expenses is considered a stretch.
- Another concern is to find a house in a good neighborhood that is near to your workplace. If you have kids, you may want to buy a house with good schools nearby.
- ROI –Return on Investment is also one of the concerns. Ideally, you should live in a home at least five years before you expect to get a profit.
Seniors
As you age, you don’t have much margin for error –especially when it comes to investing in a new home. It becomes harder for a senior to recover from a financial loss as compared to an adult. So, buying a new home is a risky decision for older people, and here risk management is the key.
Older people may have concerns about maintenance costs and other related expenses. They have to be very calculative at each step and weigh in all the pros and cons of buying a new home. Affordability, convenience, and good neighborhood are concerning factors for seniors as well.
New Parents
The addition of a family member brings a lot of changes to a couple’s life. It is the wish of every parent to give the best life and home to their children. Many new-parents cut down their expenses to buy a new home for their little one.
However, the decision might be a tough one as there are so many things on the list already. There are a lot of expenses involved in childcare –especially in the early years. The parents don’t want to take one wrong financial move as it can influence their child’s life.
Buying a new home has its risks and advantages at different stages of life. However, taking the service of a professional real estate agent can help you make the right decision. A real estate agent cannot only help to find a convenient house but can also help with the mortgage and other housing expenses.