Tip # 14. Do not buy more than you can afford! SHARE this with friends! Buying a home is a great decision due to many benefits that come with it such as leveraging, automatic savings, possible appreciation, hedging against inflation, etc. Ofcourse there are some disadvantages too, biggest one being the possible reduction in value when you are ready to sell, and also the unknown repair costs! All said, buying outweighs selling in most cases! Here are few things to keep in mind when buying your primary home that you will live in!! 1. Buy what you will enjoy to live in, not just a good value. Ofcourse best would be the combination of love it and good value too! But dont sacrifice love for value! Buy smaller but buy what you will enjoy! 2. DO NOT buy more than you can afford. Keep atleast 6 months of reserves in your account for rainy days! For some strange reason, most buyers like a home that is 15-25% above their budget and many stretch themselves to buy that home. Its Ok to do so only if you can comfortably afford the monthly payments and your reserves are in place. Otherwise dont do it! Stay within your budget and avoid stress later! 3. If you have to struggle for your downpayment and closing costs, it is probably a wrong time to buy as you are not cushioning for the unknown and unseen! Have questions on this or any other real estate related matter? We are here to help! On Track Realty is a licensed real estate broker in NJ with a network of top producing agents throughout the country and beyond! Call us at 732.494.2211 for all your real estate needs. Share our tips with your friends and help them avoid costly mistakes. Have them like us on FACEBOOK so that they too can get the updates as we post them! An educated consumer is indeed the best customer/client! Track us on internet at ontrackrealty.
Posted on: Wed, 13 Aug 2014 20:01:55 +0000