Reasons To Buy: Wrong vs Right
People buy homes for a multitude of different reasons. While there are a lot of right reasons to buy your home, there are also some wrong ones. Because buying real estate at the Lake of the Ozarks is a big investment, it's important to make sure you're buying for the reasons that will benefit you for years to come. At our Lake of the Ozarks title company, we handle a lot of different real estate transactions and we watch a lot of new homeowners take the plunge. This week, we thought we'd share some of our observations to help you determine whether or not you're buying for the right reasons.
WRONG Reason: "I Need A Place To Live For A Year Or Two."
Just because you move to a new area does not necessarily mean you plan to stay there long-term. It's very common for individuals to move to a new place temporarily, especially when they are just starting out in their careers. If you know you only plan to live there for one to two years, buying a house may not be the best option. Between closing costs, appraisal fees, and other expenses, homeowners typically have to pay a lot of money upfront when they purchase their homes. If they will live there for several years, the benefits outweigh these costs - but the balance may not have a chance to tip over in two years or less.
RIGHT Reason: "I want a stable place to raise my family."
Study after study has shown that children raised in homes their parents owned (rather than rented) have been more successful in school and gone on to lead more successful adult lives. Looking for a stable environment to in which to raise your children is a great reason to buy a house at the Lake of the Ozarks.
WRONG Reason: "I like the house, but I'm not crazy about the neighborhood."
This might seem a little counter-intuitive at first, but when you purchase real estate, you're really buying much more than just the house. You're also buying the surrounding views, the neighborhood, and everything else nearby the home. If you don't like the neighborhood, that house may not be the right place for you and your family.
RIGHT Reason: "I want to make an investment in my future."
Home prices are steadily continuing to rise. If you own a house for several years (and keep it in good condition, of course), you can almost guarantee that you will be able to sell it for more than your original purchase price. Not only will you be buying a place to live - you'll also be making a valuable investment in your future.
WRONG Reason: "I want to save money."
This point can be tricky. There are a lot of resources out there claiming that owning a house is cheaper than renting, and they're not necessarily wrong. Your mortgage payment on any given home will almost always be cheaper than what your rent payment would have to be for that exact same home. However, homeowners are responsible for a lot of additional expenses, such as insurance, repairs, and maintenance. Owning your own house can definitely be a great investment in your future, but you should prepared to handle the extra expenses associated with homeownership.
RIGHT Reason: "I've been wanting to buy for a long time, and interest rates are currently low."
Interest rates are often directly correlated to the affordability of your home. The higher your interest rate, the more money you will have to spend on your home in the long run. If you've been waiting for the right time to buy a house, we recommend making your move sooner than later; interest rates are still low, but most experts expect them to start rising soon.
Keep Arrowhead Title In Mind For Your Title Insurance Needs!
Buying a house is a big investment, and it's important to make sure you're making your decisions for the right reasons. When you are ready to buy a house of your own, we hope you'll keep us in mind for your trusted title company at the Lake of the Ozarks. We would be honored to help you secure the home of your dreams!
The Lake of the Ozarks' Most Trusted Title Company
WRONG Reason: "I Need A Place To Live For A Year Or Two."
Just because you move to a new area does not necessarily mean you plan to stay there long-term. It's very common for individuals to move to a new place temporarily, especially when they are just starting out in their careers. If you know you only plan to live there for one to two years, buying a house may not be the best option. Between closing costs, appraisal fees, and other expenses, homeowners typically have to pay a lot of money upfront when they purchase their homes. If they will live there for several years, the benefits outweigh these costs - but the balance may not have a chance to tip over in two years or less.
RIGHT Reason: "I want a stable place to raise my family."
Study after study has shown that children raised in homes their parents owned (rather than rented) have been more successful in school and gone on to lead more successful adult lives. Looking for a stable environment to in which to raise your children is a great reason to buy a house at the Lake of the Ozarks.
WRONG Reason: "I like the house, but I'm not crazy about the neighborhood."
This might seem a little counter-intuitive at first, but when you purchase real estate, you're really buying much more than just the house. You're also buying the surrounding views, the neighborhood, and everything else nearby the home. If you don't like the neighborhood, that house may not be the right place for you and your family.
Home prices are steadily continuing to rise. If you own a house for several years (and keep it in good condition, of course), you can almost guarantee that you will be able to sell it for more than your original purchase price. Not only will you be buying a place to live - you'll also be making a valuable investment in your future.
WRONG Reason: "I want to save money."
This point can be tricky. There are a lot of resources out there claiming that owning a house is cheaper than renting, and they're not necessarily wrong. Your mortgage payment on any given home will almost always be cheaper than what your rent payment would have to be for that exact same home. However, homeowners are responsible for a lot of additional expenses, such as insurance, repairs, and maintenance. Owning your own house can definitely be a great investment in your future, but you should prepared to handle the extra expenses associated with homeownership.
RIGHT Reason: "I've been wanting to buy for a long time, and interest rates are currently low."
Interest rates are often directly correlated to the affordability of your home. The higher your interest rate, the more money you will have to spend on your home in the long run. If you've been waiting for the right time to buy a house, we recommend making your move sooner than later; interest rates are still low, but most experts expect them to start rising soon.
Keep Arrowhead Title In Mind For Your Title Insurance Needs!
Buying a house is a big investment, and it's important to make sure you're making your decisions for the right reasons. When you are ready to buy a house of your own, we hope you'll keep us in mind for your trusted title company at the Lake of the Ozarks. We would be honored to help you secure the home of your dreams!
The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters!
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