How important is location?
Location is one of those varying factors that has a huge impact on your buying decision. Ask yourself the following questions.
How close do I want to be to work?
Do I want to be in the city or in the suburb?
How far away from busing and transit do I want to be?
How close to shopping centers and grocery stores do I want to be?
Do I prefer densely populated or rural areas?
By answering these questions you should have a better understanding of where you want to be.
Price vs Comfort?
When looking for a home you need to consider what it is you’re really looking for. Are you looking for a long term residence? Or are you looking more towards a place that will generate some equity and will be a stepping stone to a future purchase?
If you’re starting out and don’t have a large resources pool of funds, it may be wiser/safer to search for homes that will be easier to afford vs. larger and more difficult to sustain.
Also keep in mind, just because you might qualify for a more expensive home, that doesn’t mean you’ll want to strap yourself for cash for several years afterward. If you’re barely making enough to cover a mortgage payment, car payment, medical insurance, electricity, water, sewer, garbage, and food, you may want to consider what your life will be like financially if you go for something that you can afford but only barely.
Buying a smaller, more affordable home will help you keep your options open and will provide you with an equity stepping stone to purchase something more long term in the future.
Buying a new home as a first time home buyer can be daunting financially. Should it fit within your needs, a roommate can alleviate some of the financial burden. While many first time home buyers prefer to purchase the home for the privacy, some individuals or couples can get help financially with the sacrifice of some privacy.
Why Should I Own?
There are many benefits of owning a home. By buying a home, a portion of your mortgage payment will be going towards the principle of the home, increasing the equity. If for example you’re a first time home buyer, buying a smaller and more affordable home, and later selling it is often a means towards your goal/dream home. Also, instead of paying rent, you’re putting money towards an investment that will also appreciate over time. There are also other benefits like pride of ownership, and tax write-offs.
As with many decisions, what your needs are depends on the individual. As a first time home buyer you’ll need to think about what matters most to you and go from there. By knowing what your needs are it will not only help you get what you want, but it will also help in the search for your home.