Are You Ready To Become A Homeowner?
You’ve probably come across countless articles explaining that today’s Americans are waiting longer than ever before buying their first home. Some first-time homeowners are even in their late 30s or early 40s before they finally decide to leave their tenancy lifestyle behind. Admittedly, there is no denying that today’s properties have become a lot more expensive than what previous generations would have paid. As a result, many prospecting home-buyers spend over 6 years saving to be able to pay the average 20% mortgage down payment on the property. IN other words, if homeownership is your American Dream, you’d better start saving as early as possible.
However, the financial aspect of home buying is only one of the most common reasons quoted by tenants to delay their first step on the property market. Buying a home, as they perceive, is a complete change of mindset. Indeed, it’s a long-term investment, not only from a financial perspective but personal too. Are modern-day city-dwellers ready to commit to a lifestyle and a location for several years? They are not sure they want to own a house.
1. Do You Make Ends Meet?
Managing your budget is crucial to reach your financial and life goals. However, for two-thirds of Americans, budgeting is a complicated and unpleasant chore they tend to avoid. Why do we hate budgeting so much? It’s likely to be linked to the increase in living costs and the difficulties for young professionals and vulnerable adults to manage their needs between each paycheck. However, not budgeting could be a huge step back in your finance management. Prospective home-buyers know that they have to embrace budgeting as a habit if they are to purchase a property. If counting what comes in and out of your bank account makes you nervous, it’s fair to say that homeownership is out of reach for now. However, automating your budget can help you to gain back control and make peace with your financial blackouts.
2. Find A Community That Suits Your Lifestyle
Finding a home that suits your budget is one thing. But finding a community you can fit in is another kettle of fish. Young home-buyers are often inexperienced in recognizing healthy and friendly neighborhoods as a result of an isolated lifestyle – indeed, less than 25% of city-dwellers know their local communities. Many young adults commute through town to go to work or eat out, which means that they invest less time and effort in their area. However, neighborhoods that are cared for tend to retain homeowners for longer!
3. Home Ownership Means A Lot Of Responsibilities
It’s so easy to call your landlord when something breaks that many tenants are not keen to have to do it themselves. Becoming a homeowner means accepting further responsibilities. When things break at home, you are the one who has to replace them. Similarly, you’re in charge of the property maintenance from landscaping to snow removal and water heater. For busy professionals who accumulate long hours in the office throughout the week, the idea of having to do the same at home is not an appealing option, hence the purchase of a property can be delayed by many years.
Saving for your future home is hard work. But it’s often easier to save money than it is to change your routine. Unfortunately, buying a home is all about building a new routine, in terms of financial management, community engagement, and home maintenance. If you’re not ready for any of these, there is no point in looking for the best property to buy.
Are you ready to become a homeowner? Comment below!
[a contributed post]
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