Are you thinking about saving some money by purchasing your next home for cash? Here are a few important things to consider before going ahead with your investment:
Future Repair Needs
It's important to consider what future repairs a prospective home may need before deciding whether to purchase it for cash outright. While you may save some money on the initial purchase since you won't be paying interest on a mortgage, that saved money could get sucked up quickly if there are a lot of repairs and upgrades you'll have to make during the first few years after making your purchase.
Have the house you consider purchasing thoroughly inspected by a professional so you know exactly what condition it is in and what kinds of repairs and upgrades you may have to face in the near future. Everything from the driveway and foundation to the roof and the air ducts should be tested to ensure proper functionality and safe structural integrity. The inspection will help you determine just how much the home will realistically end up costing you by the time you finish fixing it up.
Taxes and Insurance
Not only do you have to think about what the tax and insurance costs currently are for any home that you are interested in purchasing, but you should consider potential increases in those fees as time goes on so you can factor those fees into the overall cost of the home. If you plan to expand the home with new room additions, you'll likely see both your taxes and insurance rates increase as a result, so those costs need to be considered in order to determine how much you'll actually be paying for the home when all is said and done.
Something as simple as building a new deck or porch could affect the overall cost of your home, so make a list of all the changes you plan to make and work with a professional to determine how much those changes will cost you.
Neighboring Home Conditions
It's also a good idea to determine the condition of neighboring homes before deciding whether to buy home for cash. If the cash deal is good, the reason may be due to the poor condition of neighboring places. And if neighboring homes aren't in good shape, you may not be able to increase the value of the home you purchase no matter what kind of upgrades and alterations you make in the future. So if value is important to you, it's crucial that you make sure neighboring homes are in good shape and are holding their own value.
Share20 September 2018
When I started looking for a new home, I realized that there were a few things I needed to be careful about. For instance, I really needed to focus on finding a home that would appreciate in value, so I began thinking about investing in the right property. After quite a bit of research, I was able to find a great neighborhood that had a big support system for my family. After we found a house we loved, we worked with a real estate agent to procure it, and it was really nice to feel like we belonged somewhere. Read this blog about ways to find amazing pieces of real estate the first time around.