After working hard for several years, you want to ensure your family future is not at stake. No wonder home buying is the surest way. It is a self-fulfilling venture and seen as a self-rewarding opportunity after toiling and saving a lot.
With many houses available at different prices from house buyers, the process is quite easy because the amount you have or set aside will determine the one you settle for. Being an emotional process, the home buying process fails to factor in some long term effects that may bring some element of regret or losses at a later stage. Avoid falling into such traps as explained below;
Long-term planning and resale; before purchasing a house, factor in your plans and adjust the purchase or the plans accordingly. If you have no kids yet, will you be getting any soon? How much space will you need for the same? Where will they school when they reach that age?
Such questions should influence the size of the home you are buying, the social amenities around, location, etc. You begin to fail when all decisions are based on your needs at the moment. You buy a small house in a wrong place, be assured that reselling it would prove difficult at a later stage. Your target market during that period will be narrowed because big families will be already eliminated from your target buyers.
Buying expenses; home buying costs go beyond the principal, insurance, taxes and interests. Include the transport costs, utilities, and upgrades if you have to do any. Liaise with respective companies to get a quote of what you will add on to get the home you desire.
Calculate a rough commuting budget to the new home and determine if it is worth moving there or not. Include all these in the budget of acquiring the home to enable you to calculate well the costs and benefits of the same. Most people fail to note down these other extra expenditures.