If you watch the news in order to get the best information on whether you should buy real estate, you’ve likely hear a lot of advice suggesting that now is the time to buy real estate. Use the suggestions given from Daintree Residence Showflat below to expand your inquiry and analysis of various reasons you might consider purchasing a home rather than renting that can better inform your decision.
If you determine that rent is throwing money away and therefore you’re considering purchasing real estate in which to live, it’s likely that you’ve begun to consider the comparison costs of renting or buying.
Make sure to expand your consideration of monthly expenses of home ownership to include costs of property taxes, as well as a breakdown of how much homeowner’s insurance will cost you a month. If you’re considering property that has homeowner’s association dues, make sure to include them as a per-monthly cost as well.
If you’re considering buying real estate because mortgage rates are at some of the lowest levels they’ve ever been at, expand you inquiry to including a phone call to an accountant to inquire how much of your mortgage interest would be deductible if you took out a mortgage of a specific amount at a certain rate of interest in order to better understand the actual tax benefit you’d receive from home ownership.
You should consider whether you’re rushing yourself into a home purchase assuming a rapid rise in mortgage rates and upon what if any evidence you’re basing that belief.
If you’re considering purchasing real estate in a specific area because rents have climbed significantly since the housing crash, expand your inquiry to determine whether all rents in your region have risen dramatically, what the unemployment rates are in your region, as well as how many rentals are available in order to back up the trends you believe you’re seeing in your regional rental market with the facts.
You should consider the direction of housing prices in your area over the last few years as well as predictions and trends that indicate the direction of your housing market for the near future.
If you’re considering purchasing real estate because you’re planning on living in a particular area for at least several years, you should expand your consideration to include the current average length of time it takes to sell properties in the area you’re considering, and whether there is a surplus of properties that are in your price range.
If you’re considering purchasing real estate as an investment, don’t overestimate how much you believe a particular piece of property will go up in a short number of years because post-housing crash there are no definite investment returns you’ll see on any real estate purchase.
The decision to purchase real estate is a big one in terms of the money, time and ongoing expense you’ll incur in connection with such purchase. Use the suggestions above to begin fleshing out the realities of general arguments that are frequently put forth in favor of purchasing real estate in order to better understand what you’re choosing to get into before you buy real estate.