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Thinking About Buying Your First Home?
Many renters are starting to think about purchasing a home of
their own. Several factors should be considered when purchasing
a home:
Part 1: How long you plan to live in the home.
If you purchase a home and get a job transfer or decide to move
after only a short time, you may end up paying money in order
to sell it. The value of your home may not have appreciated enough
to cover the costs that you paid to buy the home and the costs
that it would take you to sell your home.
The length of time that it will take to cover those costs depends
on various economic factors in the area of the home. Most parts
of the country have an average of 5% appreciation per year. In
this case, you should plan to stay in your home at least 3-4 years
to cover buying and selling costs. If the area you buy your home
in experiences an economic up turn, the length of the time to
cover these costs could be shortened, and the opposite is also
true.
How long the home will meet your needs.
What features do you require in a home to satisfy your lifestyle
now? Five years from now? Depending on how long you plan to stay
in your home, you'll need to ensure that the home has the amenities
that you'll need. For example, a two-bedroom dwelling may be perfect
for a young couple with no children. However, if they start a
family, they could quickly outgrow the space. Therefore, they
should consider a home with room to grow. Could the basement be
turned into a den and extra bedrooms? Could the attic be turned
into a master suite? Having an idea of what you'll need will help
you find a home that will satisfy you for years to come.
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