Acquiring a home is a significant milestone for many people and comes with many benefits worth considering. For instance, a house is an asset that appreciates over time, meaning that you can make a lot of money should you decide to sell it. Other perks include property tax and mortgage interest deductions and capital gains inclusion. It’s no wonder that 79.36 million homes in the United States are owner-occupied. If you desire to purchase your dream home, you need to consider the following factors.
What Factors Should You Consider To Find Your Perfect Home?
Various homes come at different prices, depending on factors like demand and supply. It’s not uncommon for people to buy homes for higher prices than their financial strength. This usually leads to financial strain and sometimes the inability to complete the payment. Experts advise that you buy a home if:
- You can afford to save rather than relying on your home as a piggy bank for future needs.
- Your payment is a practical percentage of your take-home pay.
- You can handle property taxes and insurance without putting yourself in a financial fix.
- You have a good emergency fund to take care of unforeseen circumstances.
Whether you desire luxury houses and estates or regular apartments, it pays to examine your finances to determine what kind of home you can afford. As a tip, multiply your annual salary by 3 (low-end) and 4 (high-end) to estimate a feasible price range for your home. For instance, if your annual salary is $50,000, you can search for homes within the range of $150, 000 to $200,000.
Distance and proximity to social amenities
Despite its aesthetic value and price, a home can become a burden if situated in a distant area. Therefore, you want to factor this in before making a decision. That said, you want to consider the distance from your workplace to your potential home to ascertain if commuting wouldn’t be a problem. You also want to look for a dependable public transport network in the area, even if you own a car. Not only will you reduce fuel consumption and car maintenance costs, but you’ll also save yourself the stress of driving to and fro every day.
Another thing to consider is the proximity of your new home to amenities such as hospitals, parks, schools, and recreational centers. That said, it won’t be a wise decision to buy a home that is quite distant from a hospital, as that might prove stressful in case of emergencies. Being closer to restaurants and bars, kid-friendly facilities can make your stay more enjoyable, so keep this in mind.
Certain neighborhoods have high crime rates, making it unsafe for you and your family. The FBI records 2.5 million burglaries annually, with 66% being home invasions. Therefore, you want to consider the security of your potential neighborhood before deciding. As a tip, peruse the environment to determine the condition of the houses in the area. Vandalized properties may signify high violence rates. It also helps to speak to your neighbors for more insight and use online tools like Family Watchdog for good data regarding the area.