Is buying a home good for your finances? A simple question, but is there a simple answer? I’d love to tell you that there is, so you could carry on with your day. However, answering this question is certainly more complex than most people think.
For me, I notice that a lot of people are brought up believing that buying a house is the ultimate financial step in life. It’s seen as the end goal, the moment where you’ve truly made it as a successful adult. In the past, everyone would own a house as early as they could, it was just seen as the right, and smart, thing to do.
Nowadays, perceptions have changed almost to the point where people believe it’s not smart for their finances! Buying a home costs too much money and you’ll be repaying a mortgage for years – this is what many people are saying right now. As such, there’s a trend where more people are renting rather than buying.
But, going back to the original question, the answer depends on what you’re buying your home for. Typically, there are two main reasons to buy a home; to live in or to invest in. To see the true effect of buying a house on your finances, we have to explore both of these reasons.
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Investing In A Home
Is buying a home – purely for investment purposes – good for your finances? The majority of the time, yes, it is a good idea. Real estate investments have a proven success rate, whether you’re buying to let or property flipping. Having said that, you can easily lose lots of money if you make a bad property investment. Ultimately, it boils down to whether or not your investment can make money. Keeping that in mind, here are a few pieces of advice to help you buy a home that will bring a good ROI.
Be Diverse And Buy Foreign Homes
Buying a home in a foreign country is a smart way to guarantee you get a good investment. Mainly, this is because a lot of foreign houses can be much cheaper. It’s well-known that countries in Europe like Spain and Italy offer great value properties to invest in. Plus, as seen here https://rumahdijual.com/cibubur/apartemen-cibubur-village, there are countries in Southeast Asia with thriving property markets too. By purchasing a foreign home, you open yourself up to more benefits too. There are certain tax laws in place here that aren’t in place elsewhere. While you can easily flip a foreign property, they’re usually best invested in as rentals. Become a landlord and earn money from overseas tenants, making your investment good for your finances.
Don’t Buy New When Property Flipping
Property flipping is the age-old method of buying a home, improving it, and selling it for a profit. It’s a tried and tested technique, and there are plenty of examples where it goes well and proves buying a home is great for your finances. However, there are examples of the opposite too. Mainly, this happens when people buy new homes to try and flip. The older a home is, the better it is for flipping. It means there’s more room for improvements, meaning you’ve got more room to boost the value and gain a good profit. But, if you buy a new home for property flipping purposes, you’ve got almost nothing to improve and hardly any ways of boosting the value, meaning you can’t gain a decent profit.
Wait Until The Market Is Stable
Investing in a home is all about waiting for the Goldilocks moment. This is what I like to call the time when the market is just right. Buy a home when the market is booming, and you can overpay quite considerably. Invest when it’s low, and you could snag a bargain but will struggle to sell it on or find tenants because the economic market is poor. You have to wait until the right time, where everything is stable, and you get good value for money and still have chances to make money.
The bottom line is that if you find the right investment, and don’t make any mistakes, you can earn a lot of money from buying a home. In which case, it will undoubtedly be good for your finances! If investment is your choice of approach, check out this article here https://www.investopedia.com/articles/mortgages-real-estate/11/make-money-in-real-estate.asp. It’ll show you how to make money in real estate, and improve your finances.
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Buying A Home To Live In
Now, buying a home with the sole intention to live in it is a different proposition entirely. The aim is not to make any money, so, how can it be good for your finances? Some people argue it’s a positive financial move as you no longer have to pay rent and you’ve gained a physical asset. In this respect, you’ve got something of financial value to pass down to your children and their children too. Also, you can potentially make a profit if you move house in the future, depending on whether your home has increased in value or not.
Then, you have the arguments that buying a home is too much of a financial burden. A mortgage costs a lot, and you may not have rent, but you’ll have those repayments every month instead. You’re also in charge of everything about your house, meaning you pay for all the repairs and maintenance that a landlord would in a rental property.
It certainly divides opinion, but let’s take a look at some points that should be considered when buying a home.
Job Stability
Buying a home is not good for your finances if you don’t have a stable job. This means you might be unable to pay your mortgage and end up in loads of debt. Only consider it if you have a stable, well-paid, job.
Housing Market
Much like investments, buying a home to live in depends on the housing market. This time, you should aim to buy when the market is at its lowest point. This provides you with the best value properties, making it more affordable to buy.
Bill Payments
When you rent a home, you might get your bills included in the monthly rent. I know some landlords like to include the energy bills in here. Or, more to the point, you pay them separately but don’t have much choice. The home you live in could be supplied by one energy company, and you don’t get to change it. If you own your home, you can do this, change to a cheaper supplier, and save money.
Buying a home to live in is good for your finances when you’re fully prepared for it. If you’ve got the money to outright buy a home, then go for it. You’ll never have any rent payments to worry about again. However, if you’re not prepared and can only just afford a mortgage, put a pin in it, as buying a home at this stage can harm your finances.
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The Conclusion
So, is buying a home good for your finances? The truth is, there’s not an answer that applies to everyone. If you invest in a home, there’s every possibility it’s good for your finances as you can earn a lot of money. But, this only happens if you make a smart investment. Likewise, as we’ve just discussed, buying a home to live in can be beneficial for your finances, depending on your current situation.
That’s the key here, you have to look at yourself and decide if buying a home is right for you. But, don’t be forced into thinking you should invest in property or you need to own your home. There are other investments out there and renting is just as good at times!
If you have watched any reality television shows about house hunting, or have paid attention to real estate stories that are online, there are always people who buy a house and then end up with a nightmare. Just because a home looks like it is one of the best and most picturesque listings you have ever seen, you still need to be cautious of what it really is. Any given home could be hiding a significant number of problems just out of sight, so you need to be certain to keep the following points in mind before you purchase a new house, even if it does look like it is the house of your dreams.
Have an Appraisal Done
As Yahoo News states, the cost of a home appraisal is not that expensive, but you need to have it done. On the basis of a market valuation you might be willing to pay a certain amount of money for a home, but you also need to be aware of just how much money it actually is worth. And, while you might also be worried that you will lose the house if you make it conditional on an appraisal, then you have to remember oftentimes the banks will want some sort of appraisal done anyways to ensure that they won’t actually be giving you more money than the building is worth.
The reason an appraisal is also such a good thing is because an appraisal will take into consideration everything from the comparable values or the market to also understand what your finances will be. As the appraiser looks at the house they may also even take into consideration some of the current values of the home itself, and might be mindful enough to tell you when certain aspects of the home might need to be replaced, updated, or repaired in order to get full value. The unit appraisal is a great benefit because it means you know the true value, and as you deal with the bank it also means you know exactly what numbers you are working with when it comes time to make an offer, obtain financing, or close on the house.
Know the Details of the Surrounding Area
The most important thing you have to do when it comes time to find a townhouse for sale with DDProperty is that you specify the areas you are comfortable with and know what type of environment you will actually be in. While every area is going to have their own benefits and their own problems, you just can’t afford to live in a spot where you know the hassle is too much. What if the crime is too high, the traffic and noise are too dense and loud, or even the schools aren’t that great? When you are looking for the next place to call your home and you have to understand exactly what you are getting yourself into, the one of the best things to do is find out about the area.
If you are unaware of the general area, you could always continue to seek out advice by asking your realtor. After all, they should be comfortable enough with a given location to tell you what you need to know. On the other hand, you might want to be sure you are getting the up to date information straight from the source and in that case you could always just speak with the neighbors of a potential home and see what they have to say. Take all information with a grain of salt just in case they are overly happy or unsatisfied with the area, but where there is smoke there is fire and you should also be able to spot trends if multiple people have the same opinions about an area. The last thing you want to do is to move into an area where you have things surprise you, after all.
Know Your Upfront Costs
While costs can absolutely change depending upon the location, the realtors, the type of loan and even the type of property, if you are looking to buy a home then you need to know the cost of the closing itself is expensive but everything leading up to it will absolutely nickel and dime you as well. The fees and taxes that are already mandated for the services you are expecting can be enough of a hit on your wallet or your purse, but when you start to think about the specifics of what else is going to start costing you then you have to know what you will be on the hook to pay.
According to Fox News, the other things you should be expecting to pay when you are looking to buy are the add-ons that most people know they pay but don’t realize how quickly they add up. Homeowners insurance is one, and PMI can be another. You don’t even know you need to pay them until you recall how expensive they actually become. Throw in the costs of maintenance for cleaning supplies and something like a lawnmower and your expected costs are through the roof.
Deciding on a house that you fall in love with will be exciting enough for anyone to want to rush through. Once you have found the unit of your dreams then why do you want to wait for anything else like specifics, fine print, or even paperwork? However, if you aren’t comfortable with the idea of making sure you know exactly what you are getting into, then perhaps home ownership isn’t for you yet.
When first buying a home, you dream about designing the new house the way you want to. You try to make the home look how you want it. While some may obtain this goal sooner than others, one thing remains true, your home is perhaps the greatest investment you will ever make. That being said, it makes sense to provide protection for this investment. The way in which consumers protect their homes is to obtain a home insurance policy. Home insurance can encompass a variety of coverage to provide a sufficient level of protection.
Theft is unfortunately a common occurrence for homes in the United Kingdom. On average, a home is burgled about every 37 seconds. With such a high incidence rate it is important to have home insurance which provides reimbursement for items that have been stolen. Also, if any damage is done to the home by the thief will committing the crime, this can be covered as well.
Fire can also be another hazard that homeowners must protect themselves against. Home insurance can also cover any damage to both the dwelling itself as well as the 
contents. Typically, these will come in two kinds of coverage bundled into the home insurance policy. If the fire leads to severe damage, home insurance can help the family pay for alternative lodging until repairs can be made. If the home is totally destroyed, home insurance will cover the expenses to rebuild the home.
Flooding can also be covered with some types of home insurance. Depending upon the insurer, it might need to be taken out as a separate policy. Flooding can cause water damage to the exterior as well as the interior of the home. Contents can also be damaged and in some cases, destroyed. Having home insurance can lessen anxiety homeowners face when the unthinkable does happen. Without insurance, homeowners may not be able to recoup from such significant losses.
You can find further information about different types of insurance at http://www.endsleigh.co.uk. They have lots of information to help you discover which type of insurance will best secure your home and contents.
Before you put your house on the market, it is advisable to make it more attractive to potential buyers.
Today is a buyers market and they can pick and select which is the best property and demand lower prices.
Change the way you think, see selling a home is rather like entering a competition where the best presented home wins.
The smell of tobacco and a home owner smoking during a viewing will without a shadow of doubt put people off buying a home. Even hardened smokers don’t like a house to smell of smoke. Do not underestimate the negative affect it may have on a potential buyer, houses with smokers are harder to sell and that’s the bottom line. Smoking yellows the paintwork and embeds into the carpets and walls. Discarded cigarettes in a garden makes a home feel used and tired. Families will not want to bring their children up ion house that has suffered from smoking.
The fact is when a home becomes harder to sell for any reason the home owners has to face the fact that they may have to reduce the asking price. It may well be that a smokers home is harder to sell and therefore this will have to be reflected in the price. Once more when a non smokers buys a house from a smoker they may feel that carpets and redecorating are necessary and may use these facts to negotiate the selling price.
Smoking does not sell houses
Selling a home does not require making major improvements such as adding a conservatory or refitting the kitchen, these features are unlikely to add as much value to your house as you might think. Even redecorating should only be done if absolutely necessary, as it will take time and money, and the new owners taste is unlikely to be the same as yours.
It is actually the small touches which make a difference and which will make your property stand out from the rest. Firstly the parking and garden area should be neat and tidy, as this is the first impression that the prospective buyer will get of the house.
Household Insurance for Smokers
When you apply for home owner’s insurance, one of the questions that you’ll be asked is whether or not you (or any family member) is a smoker. If you’re a non smoker, most home owner’s insurance policies will give a discount of 10%.
As with all insurance, policy premiums are determined through studies on the risk factors that certain groups of people exhibit. Those that are found to be part of a riskier group usually have to pay more money for the same amount of insurance. Studies show that homes owned by smokers are more likely to have home owner’s insurance claims against them than non smokers.
1. Smokers burn down houses. There are over 20,000 residential fires a year caused by cigarettes. Since smokers are the ones that have cigarettes, the act of smoking increases the risk that a house will burn down.
2. Smokers tend to have riskier overall habits than non smokers. These riskier habits can lead to more home owner’s insurance claims than non smokers.
3. Because smokers need matches or lighters for their habit, this means that children in the house are likely to have more access to these than children living in houses with non smokers. This increases of an accidental fire started by the children
