When you’re trying to buy a home in a challenging real estate market, it can be all too easy to focus on the short-term. But in markets like these, where competition is high and supply is low, it’s even more important to focus on the long-term side of real estate!
As you go through the buying process, remember that your home is an investment, and a large one at that. You want to choose the property that works best for you today, tomorrow, and in a few years. That means buying is not the time to rush into a property that won’t work for the long-term. Patience is key here. Here’s what you should look for in a property that will stand the test of time.
1. Potential for appreciation: Your home is an investment, so finding a property that will appreciate in value is a smart idea to help grow your wealth. While almost every property will appreciate in value over time, finding a home that needs a few cosmetic updates or one located in an up-and-coming neighborhood will help you get the most value appreciation.
2. Fits your lifestyle and your future: You’re going to be living in your home for a while since most agents recommend staying in your home for 3-5 years before selling so you can make a profit. Because of this, you should find a home that will grow with you as your lifestyle changes. If you’re planning on starting a family, look for homes that have the space to grow
3. Fits your budget so your wealth can grow over time: The home you choose also needs to make sense for your budget in the long-term. If the mortgage payment is too high, you could end up “house-poor” and not be able to enjoy your home as a result. Make sure to project out different budget amounts so you end up with a mortgage that allows you to comfortably pay off your loan and build equity.
Real estate is a long-term game. While we’re in a tough market for many buyers, that’s even more of a reason why you shouldn’t settle for a house that just kind of works. Make sure you focus on finding a property that will provide long-term success with the above tips.
If you’re ready to talk more about what you need to focus on when buying a home in this market, just let us know!