Your home affects every aspect of your life, from your financial stability to things you do in your free time. It's also probably the most expensive purchase you'll ever make. Yet it seems like you always have to sacrifice something when buying a home. Here are the tradeoffs that homebuyers commonly face.
While location is key, people compromise on their ideal location all the time - they move further out into the suburbs even though they work in the city because they want a larger/newer/nicer house for a lower price, for example. Sometimes it's worth making a tradeoff on location to get something else you want.
If you buy a home in a multi-unit building, your level of privacy will vary with the overall size and layout of the building, the quality of construction materials used, your unit's location in the building and the behavior of the community. In a single-family house, factors such as lot size, number of stories, fence height and vegetation can all impact the level of privacy. Homeowners who want to live near the heart of the city often trade privacy for location since urban areas tend to be more densely populated than suburban areas.
What kind of financial and time commitments can you put into maintaining the property? Do you want a backyard for parties or pets? Condos and townhomes can be more difficult to command top dollar for when you go to sell because there may be other units for sale that are identical to or very similar to yours. Since condos and townhomes are often cheaper than houses, first-time homebuyers commonly make the tradeoff of choosing the former over the latter.
A better location and nicer amenities will increase a home's price. If you're not wealthy, you'll have to sacrifice some of the things you want to stay within your budget. Be realistic about what you can get for your dollar and remember to rely on your own calculations of what you can afford, not your lender's estimate.
Personal FinanceThese errors could wind up costing you more than the coveted key to your first home.
Personal FinanceFollow this step-by-step guide to make your homeownership dreams a reality.
RetirementBy Amy FontinelleOnce you've decided where you want your new home to be located, it's time to decide what kind of home you want. The three major choices are condos, townhouses and detached houses. ...
Personal FinanceThese common mistakes occur when you allow your emotions to take over.
Personal FinanceThere are a number of factors, aside from cost, that you should think about before buying a new house.
RetirementBy Amy FontinelleSo you've picked out some locations you're interested in and thought about the style of home that suits you best. Now it's time for some planning of the less fun ...
RetirementBy Amy FontinelleWhether you are purchasing your home as an investment, a lifestyle upgrade or both, one of the most important decisions you will make is where you want to live. Your home's ...
Managing WealthLearn more about the financial risks and worst case scenarios associated with buying a home before selling your current residence.
MarketsMillennial homebuyers need to research a lot of things, such as how much to pay, down payments, PMI, FHA loans and special programs for first-time buyers.
Personal FinanceThe first step in figuring out whether it makes more sense to move or stay put is to clarify what you’re unhappy about in your current home and how you’d rather be living. Putting ...