A huge decision, a serious commitment – these aptly describe what home buying is all about, especially for those who are doing it for the first time. While owning a College Station real estate property may seem like a very attractive prospect, given the economic gains the area is experiencing, a lot of careful planning and consideration have to be made before you take that plunge
One of the things you need to do is to balance emotions and logic. Writing for The Huffington Post, financial advice expert Carrie Schwab-Pomerantz, CFP recommends looking deeply into your reasons for buying a home. In particular, you need to ask yourself this: will owning and caring for a home give you a sense of security and stability, or will it be a burden and a sacrifice?
Once you have sorted the emotional aspect of the decision, you can take a closer look at the financial part:
If you’re emotionally ready to be a homeowner, then it’s time to run the numbers. And not just the initial numbers that will get you into a home — down payment, closing cost, fees and assessments — but also the ongoing financial obligations.
A big mortgage can be a tremendous source of stress if times get tough. You want to be sure you’re not stretching yourself to the limit from day one. If paying your mortgage will mean you have to compromise on other financial obligations, you may need to rethink the situation.
And remember, your mortgage is just a part of the overall cost of owning a home. There are property taxes, insurance, repairs and maintenance, and perhaps even renovations — all should be factored in from the start.
Once you identify the expenses, compare the total costs of buying against renting. The New York Times’ rent vs. buy calculator is a very useful tool in making that comparison. Factors such as home price, the length of time you intend to stay in the place, overhead costs, and possible revenues are tallied and projected. The results will give you a very good idea on which between renting and buying is the more financially viable and desirable option.
Once you have made the decision to buy, call on a trusted College Station, TX real estate agent, like one from Traditions Realty Team, who can present you with properties for sale that would match your budget. A seasoned pro can help you make the objective choice that will optimize your investment.
(Source: Buy or Rent? And Where to Park Your Down Payment until You Decide?, The Huffington Post, July 2, 2014)