If you currently live in a rental property and you’re thinking about buying your first house, there are a few questions you need to ask yourself before you make that leap:
1. Are you financially prepared? When you’re buying a home, even if you do a zero-down mortgage, there will be other unexpected costs to account for. If you’re renting a home and the toilet backs up, for example, you can simply call the landlord. When you own a home, the burden falls on you.
2. Are you prepared to make some compromises? It’s important to know things like the areas you want to live in, the square footage you’re comfortable with, and how long you planning on living at the home in question. If it’s your first home, you have to figure out what you can live with.
3. Are you emotionally ready? If you can manage those aforementioned compromises, you’ll be in far better shape in answering this question.
“If you own a home, you’re free to do what you want.”
4. Will owning a home pay off in the long run? If you’re going to live in the home for less than two years, there’s a good chance it’s not worth buying. If you’re going to be there longer, not only will you build some equity in the home, but you’ll also get a good tax deduction from the mortgage interest.
5. Has your lifestyle outgrown your rental property? Maybe you want to get a dog but your landlord won’t allow it. Maybe you want to paint a wall a certain color or tear one out completely to make your kitchen bigger. If you live in a rental, you have to adjust your lifestyle accordingly. If you own a home, you’re free to do what you want.
If you have any questions on this topic or have a topic in mind you’d like to see me discuss in a future video, feel free to reach out to me by phone or email. I look forward to helping you!