Perhaps the biggest financial investment an individual can make in their lifetime is purchasing a new home. Reports have indicated that the average person can have approximately 40% of their overall wealth invested in their home.
When it comes to planning everything financially in terms of a home, here are three useful tips to make note of.
Purchase a Home to Improve Your Life
Your home is the one place where you do all sort of everyday things, meaning that it’s more than just a mere financial investment. When it comes to the housing market itself, it can be unpredictable to purchase a more primary home just because you may think it’ll bring you some type of financial return in the long run. The home you purchase is one that you’ll likely be living in for the next several years, meaning that your top priority should be searching for one that will meet all of your needs, as well as help you to build the life that you want to have.
Focus on the Things That are Important to You
Back in November of 2017, there were 10% fewer homes available on the market. This means that you should search for a home that meets all of your needs while, at the same time, not getting yourself distracted by features that may cause you to not properly follow your budget. Compose a list of your most basic needs not just for your home, but for the neighborhood you want to live in as well. When the time comes to search for a home, follow all of the criteria that you’ve listed.
Don’t Spend More Than One-Third of After-Tax Income on Housing
If you can spend too little on your home rather than spending too much, that will most definitely be a good thing. One-third of your overall after-tax income is an amount that is very manageable.
Thank you for visiting Weichert Realtors – Harrell Property Group! We’re excited for the opportunity to help you find your next dream home.