Robin Tanner's Blog
The house is perfect. Size, location and design of the home fits your personality and your lifestyle to a tee. As if to crown all of the advantages associated with the house, the neighbors are friendly, responsible and fun.
When staying away from owning a new house may be best
Each time you've stopped by the house, at least two neighbors spoke and waved a heartwarming "Hello". Not a single neighbor was guarded when you asked them about schools, shopping, social events, community organizations and worship centers in the area.
Property taxes in the new neighborhood are also good, lower or not much more than what they are where you currently live. Yet, as perfect as it seems, buying a house now is a bad choice. In fact, it may be best to postpone buying a new house if you meet one or more of the below criteria:
- You just filed bankruptcy and your disposable income is too tight for you to take on the responsibility of owning a used car or a new furniture set. If you can't keep up with payments on these smaller items, it's highly likely that you can't afford to buy a new house.
- Houses where you currently live are selling slowly. You'd take a loss of several thousand dollars, perhaps more than $25,000, if you sold your current house now.
- Interest rates are rising two to three times a year. Your credit would make it hard to secure a fixed interest mortgage. You could save $100 or more a month if you wait until interest rates lower or your credit score improves.
- In a few years, your household size will change. For example, adult children may leave home for college or may be in the process of saving enough money to buy their own house. Once your adult children move out, you'll need a smaller house.
- The environment as your job is shifting. You're not certain that you will still be with your current employer in a few weeks or months when you suspect that your current employer will do a layoff.
- Although you're going through marriage counseling, your relationship is experiencing deep challenges. You're not sure that your marriage will survive the challenges. Buy a house now and you may have one other piece of property or equity to let attorneys help split between you and your former spouse, should your relationship dissolve.
- Recent investment that you've made have squeezed your finances. For example, if you started a new business, it could take two or more years to generate enough income from your business to take on a mortgage.
A well built house last for decades. This gives you time to sharpen your financial portfolio before you buy the house that you love. As tempted as you are to punch the button and take on a hefty mortgage just so you can live in a house you want,if you buy the house before you're financially ready, you could regret the decision for years.
Could one of these fears be stopping you from creating new, rewarding memories in a home you can truly call your own? If so, you might be forfeiting more than you think.
Home is an incubator of great memories
Memories color your life with emotion. Memories serve as signposts to your most endearing and life changing experiences. They get you through the toughest times. When you recall your sweetest memories, you might discover that many of them were created inside a home.
Picture it;hot apple cider, festive music and gifts beneath the Christmas tree as you and your family dine and laugh at your grandparents' house during winter. Summer barbecues shared with 30 of your closest relatives and friends at your parents', the house spacious enough to easily accommodate all guests.
Fears that hold you back
You appreciate having a place to create loving memories year after year. Over the last several years, you've been thinking about buying a house of your own. But, you keep putting buying a house off. Despite your desire to own your own place, these fears could halt your progress.
Lack of finances - Do you keep telling yourself that you don't have enough money to buy a house? Do you imagine yourself getting laid off and being unable to keep up your mortgage payments, all this before you buy even a small, affordable house? See if you also worry that you won't be able to afford a new car, to start a business, invest in an improved wardrobe or move into a better apartment. If so, you could be afraid that you'll never have enough money to do what you really want to do.
Weak DIY skills - Maintenance skills aren't required to own a home. Lenders don't ask borrowers if they have plumbing, electrical, roofing or construction experience. But, that doesn't stop you from trying to figure out what could go wrong with any house that you want. Every time you think about it, you imagine something breaking at the house that you can't afford to fix.
Security guarantee - Living in a house alone scares you. It's reached the point where sundown triggers fears of being victim of a home invasion. There aren't enough locks and alarms in the world to pacify your fears. You demand a written guarantee from the universe that affirms that your house will never, ever get robbed.
Unknown future - Change, including the birth of more children, a breakup or a new job, scare you. You need to know that you'll be prepared to meet any impending change without having to move again. For you, a starter home won't do. You're seeking permanence.
You're right. Owning a home is about more than finding a house that meets your family's dwelling needs. Owning a home is about more than paying a mortgage. There are maintenance and repairs to be made. If your family expands, you may have to add on a room. There will be a lot of changes from the moment you move in.
Many of these changes will involve family and friends, people who you'll create endearing memories with. When that happens, your home will be more than a residence. It will be a centerpiece of some of your life's greatest memories. If you truly want to own a home, don't let fears block you from enjoying these experiences.