You’ve probably heard the news that our market is softening. This has generated a lot of uncertainty among buyers, sellers, and homeowners in our area, but don’t worry—today’s market is still a far cry from what was true before and during the last crash.
The obvious negative impact of the recession aside, it actually taught us a lot. And now, these lessons are sure to save us from repeating many past mistakes. Here are five of the most valuable things we learned:
1. Your home isn’t always an investment. The truth is, owning a home in and of itself isn’t enough to qualify the property as an investment. How much you put down, how much it costs, and how much equity you have will all play a role in whether your purchase pays off down the line.
2. Homeowners need an emergency fund. Dave Ramsey touches on this point in his book “Financial Peace.” Ideally, you should save up enough money to cover six months’ worth of living expenses in the event of an emergency, like job loss, damage from a natural disaster, illness or injury, or any number of other misfortunes.
3. You should be wary of risky mortgages. If a loan product seems like a great deal but poses a significant financial risk, it’s best to steer clear of it. It’s better to stick with a safer option than to place your faith in something overly volatile.
4. You should only buy what feels comfortable to you. Don’t buy a home just because you can technically afford it. Just because you qualify to purchase a certain property doesn’t mean you should overextend yourself to do so. Instead, look to listings that fit comfortably within your budget, and avoid any that might cause a significant strain on your finances.
5. Homeownership isn’t for everyone. Though homeownership can be a great idea for some, it isn’t always the right move. If you’re uncertain as to whether you should buy a home of your own, feel free to reach out. We’d be happy to have a conversation about your goals.
If you have any other questions or would like more information, please give us a call or send us an email. We look forward to hearing from you soon.