Thursday, October 24, 2013

Real Estate: Are You Ready for a Home?

With the real estate industry slowly picking up, people have been asking themselves Where to Live in DC. Since the district has prime housing opportunities and a better way of living; it should come as no surprise why folks prefer to settle here. While it's nice to imagine yourself inside your dream home, the big question still hangs in the air: are you really ready for one?

Home-ownership is no joke. That's why lots of folks choose instead to rent apartments in DC. Owning a home entails certain financial and physical responsibilities that most are not ready for. There's mortgage to think of, upkeep to do every season, and taxes on top if everything else. But if you're getting frequent dreams of picking wallpaper or signing contract deals; then maybe it's about time to rethink those options.

Do You Have a Budget?

Buying a LandThis is first and foremost, the all-important question to ask all would-be home buyers. This involves other factors too: like average monthly income, credit card score, and the presence (or absence) of an emergency fund. These are crucial since it's frustrating to finally find your dream abode – only to walk away because of lack of resources. It happens all the time.

If you haven't started yet, begin by saving a bit of your earnings each month. Real estate tradition dictates that about 20% of the total home cost must be paid upfront. And this won't be easy without initial funds. Check your credit card score as well and ensure that you're in good standing. This makes loaning or getting a bank to backup the mortgage simpler; instead of being turned down because of bad credit.

Do You Have a Stable Source of Income?

It's not only the cost of living in Washington which will make home-ownership a challenge. The financial duties such as taxes and maintenance for a house is something to factor in. Having a stable job with satisfactory income will allow you peace of mind knowing you can afford the mortgage; and still be able to eat out every now and then.

Homes are one of the biggest investments one can make. It's always sad if someone is evicted just because they cannot afford to complete their payments. Learn from the mistakes of others by planning ahead.

Are You Ready to Commit?

Much like relationships, houses require full-time commitment from their tenants. Unless you're in the property trading business; homes need to be in your care for at least three to four years before it can be up for resale. Analyze yourself and your needs first before purchasing. Ask important questions like: 'will you enjoy DC living', or 'do you have no plans of moving out anytime soon'.

Are You Sure You Want Full Control?

Home-ownership's best advantage is also it's downside. Full control requires maturity. At the end of the day, it's the only place you'll be coming to. Future home owners must be ready to tackle challenges associated with having this huge asset by their side – perhaps for a lifetime.


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