What can you learn about real estate from financial hardship? There are five lessons, in particular.
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There are five important real estate lessons people have learned from financial mistakes that you need to know:
1. Your home is not always an investment. It’s true that a lot of people have made money over the years, buying and selling real estate. However, if you’re not planning on staying in your home for at least three to five years or you’re in a situation where you’ll have to move within a short period of time, there’s always a possibility you might not recover the funds you’ve put into your home. If you plan on purchasing a property, it’s important you take into consideration how long you plan on staying there.
2. Every homeowner needs an emergency fund. We can’t stress enough how important this is when you first buy a home. There are so many things that come into play that you may not account for during your first home purchase. Having a little something extra in the piggy bank is always a good idea.
3. Beware of risky mortgages. We don’t want you to overextend yourself. One of the most important lessons we’ve learned in the last couple years is to buy within your means. If you’re taking care of a housing expense, you want that expense to be within your budget and not so far that you can’t handle any more that come your way.
4. Buy what you’re comfortable with. If you don’t want to stretch yourself out or meet the cap your lender will approve you for, buy something you’re comfortable with. This is your home, after all.
5. Homeownership isn’t for everyone. Some people need the flexibility of going from place to place. Those kinds of people might be better off living in a condo or townhome so they don’t have to deal with exterior maintenance. Different properties have different needs, characteristics, and levels of care.
If you have any questions or you’re thinking of buying or selling a home, please feel free to give us a call. We’d be glad to help.
