What Works for You? When you're trying to make a decision about real estate, it can sometimes seem like you're standing at a cross section of a thousand and one roads.
The choices out there are mind boggling.
Especially when you'll have to live with your decision for five years or more.
The best way to go about it is to break the key factors of your decision down into several categories...
and make a good list of pro's and con's.
Money Let's start with the big one.
Very few people have the luxury of making a real estate decision without taking a good look at their financial resources.
The most important thing is to be realistic about your situation.
It's common for first time buyers to jump into a loan that they can't afford.
Remember that just because you can afford a $600 rental payment, doesn't mean you can afford the same thing as a mortgage payment.
Owning a home costs more than the monthly check you send to the bank.
Try to figure in the cost of maintenance, energy and water (often paid by landlords), and utilities.
One way to look at it is that if you can't save up enough for the down payment, then you can't afford the house.
On the same token, sometimes rent can cost much more than owning...
especially if you find a good deal on a handy-man special.
For example, a couple with more than three children would have a hard time finding an apartment large enough for all of them.
And renting a house might end up costing much more than searching through the listings for a 'fixer-upper'.
One trap not to fall into, is thinking that paying rent is the same as throwing money away...
and then rushing to buy a home so you can 'build equity'.
If you can afford to pay out more money than your monthly rent, then just stick that amount in the bank...
by the end of three years you'll have saved much more money than you would have built in equity.
Maintenance and 'Home Headaches' This ties in closely with the subject of money.
There's a reason people often refer to their homes as 'money pits'.
Owning a home means constant maintenance and unexpected expenses.
Something like a broken furnace creeps up out of the blue and has no regard for your ability to pay for a repair...
and a cold winter wind doesn't concern itself with your ability to heat your home.
The more you're able to do for yourself, the better...
but even DIY projects take money, so take it into careful consideration.
If you know nothing about such maintenance and have little desire to learn, then you might consider a condo or even modular homes.
Location and Neighbors Sometimes a good neighbor can make life easier...
but a bad one can make you want to pick up and leave.
The added space between you and your neighbors might be one of the key factors in deciding to own instead of rent.
Of course this isn't as much of a factor if you rent a house.
But when it comes to apartments, there's nothing like hearing the couple next door argue all night.
Another thing to consider is that rental property usually means a revolving door for tenants.
So even if you have annoying neighbors, they're not likely to stick around for long.
If the neighbors own their homes, you could be stuck with them.
This also becomes a factor when you look for a home to purchase...
how close is it to rental property? Personal Preference For some people, owning a home is one of the most fulfilling things in life.
All the 'good business sense' in the world can't take away the yearning for owning one's own castle.
So everything mentioned above is moot, and the only question is how to overcome such difficulties.
If this is the case, take a good look at each one of the listed subjects, and set some goals for yourself.
How will you get through these hurdles? Keep a positive attitude and remember that you're living in the land of opportunity...
where anything can happen.