Your choice to buy home for sale in Concord, Massachusetts or other areas should be supported with a good financial status and not the housing market.
Here’s the situation: Your landlord keeps raising your rental fee and you are exhausted making adjustments to keep up with other bills or worse, finding a new rental. You wish to buy a home for sale in Concord, Massachusetts as your first investment but you’re thinking twice if now is a good time, so you wonder and start asking yourself if you should buy a house. Should you?
Making a decision between renting and buying a home for sale in Concord, Massachusetts depends on many parts and your engagement to an area – You may have concerns with the relocation of your job or if the space you are renting right now would still be flexible enough in the next few years. If we base it to an economic level, you may be worried if you can cover all the expenses for the mortgage, home maintenance and the down payment. Here are some questions to take into account whenever you are buying a home for sale in Concord, Massachusetts.
Should you buy a home before the prices climb up?
In most areas in the U.S. or for example, a home for sale in Concord, Massachusetts have been steadily increasing their price every year. In this case, should you rush and buy to protect yourself from prices that might go even higher in the future? Do you think that would be a good move when buying a home for sale in Concord, Massachusetts? My opinion: Not necessarily. Do what is right and good for you. At the end of the day, the purpose of getting a home is for a place to live and create an opportunity of investment over time. Don’t overthink the market when you’re looking to buy a home. If you think this is the perfect time for you then do it. There’s no reason to put it on hold.
20% Down Payment Rule when buying homes in Concord, Massachusetts
One of the important things when considering a purchase of a home for sale in Concord, Massachusetts is to see whether you have enough funds to get one. Many mortgage companies require a down payment of 20% before they’ll approve your mortgage.
Budget versus Recurring Monthly expenses
You always have to ask yourself this question when looking to buy a home. Can you accommodate your mortgage payment with your current expenses? If your budget is tight and if you think that there is a possibility that this might lead to missed payments then your position might not be strong enough yet to purchase a home.
Savings for Up-keeping and repairs
When you transition from renting to owning a home for sale in Concord, Massachusetts, you have to be ready for some new responsibilities to maintain your property. Here are some examples:
- Gutter cleaning
- Roof replacement/repair
- HVAC Maintenance
- Floor refinishing
- Plumbing services
- Installation/repair of appliances
1 Percent Rule
You bought a home for sale in Concord, Massachusetts for $350,000
1% of $350,000 is $3500
Your budget per year per maintenance or other related costs should be $3500 however that does not necessarily mean you’ll spend 1% of your home cost every year. Some years you may spend less or you’ll spend more. This is just a rule in general to help you prepare for maintenance costs.
How long should you keep your house?
This is another rule to help you out when owning a home for sale in Concord, Massachusetts. Rule of thumb is to make sure to be in the same location for at least 5 years or you might get a hit financially due to closing costs. Closing costs incurs thousands of dollars plus the mortgage payments. Mortgage are commonly structured in a way that interests are higher during the first few years of owning the home.
How did you come to a decision whether to rent or buy a home? Let us know in the comment box!
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