Your Guide to Buying a Home
To most people, owning a home is a lifetime achievement. The achievement, however, does not come cheap. Naturally, you would not want to invest your money in something you do not like.
In most cases, you have to identify a set of qualities that your home should have. However, getting the asset that you desire most is a grueling task since you have to make a compromise at one point. This needs wisdom and extensive knowledge on various factors such as the rate of return on investment. Before taking the plunge and diving into home ownership, you need such information at your fingertips. The purpose of this home buying guide is to inform you of the pitfalls to expect. Unlike others, this guide will also offer you advice on how to counteract the challenges you will face. This makes the guide a much-needed companion.
The Most Common Types of Homes
To make the best decision, you first need to know the most common types of homes you will find in the market. The popularity of each type of home is dependent on its location. For instance, condominiums are a common type of house in cities. Under this arrangement, you own the house, but you don’t own the land on which the home stands. This is an advantage if you want to own a home in the city. However, if you are set on owning a home outside the suburbs, it is not such a great arrangement.
Detached houses are the most expensive types of homes. This is because you purchase the house and the land on which it stands. It is expensive to maintain such a home since you will dig deeper into your pocket each time you need to maintain or repair the home or the compound. The merit of such a house is the privacy it accords you. If you are looking for a spacious home, this home will be a great choice for you. A detached home will grant you and your family enough space for outdoor activities.
A townhouse is another option that you could consider. In definition, these are houses built close to each other but owned by different people. They are built in rows and might share one or more walls. The most outstanding disadvantage of such a setting is the lack of privacy since you live close to your neighbors. Such a house, however, will not be too pricey and is likely to be close to a major city. This cuts down the time it takes you to access amenities, which leaves you with more time for other activities.
Semi-detached homes are also an ideal option for you and your family. These homes do not provide exclusivity in terms of design since they consist of a pair of identical homes that share a common wall. The advantage of owning such a home means you have more privacy and you own more space. Due to their less complex design, these homes are also cheap, meaning you can own one without breaking the bank.
Important Facts to Consider
Regardless of the house type you prefer, you need to consider the facts below before purchasing a home.
- Demand in an area influences costs
- Bigger homes are more expensive
- Buying a home is not an assured investment
- Renovation increases the value of your home
As with all other assets, the rise in demand pushes the cost of an item higher. Homes close to social amenities and facilities such as roads, schools, beach, hospitals and shopping centers have a higher value than those further away. This is because everyone wants to be close to such facilities. This high demand pushes the price of such homes, making them costlier than others in the same class.
Bigger homes are not only expensive to buy, but they also mean you will incur higher maintenance costs. Insurance and tax costs will also be higher. In as much as buying a home is desirable, it is not obvious that the price will remain constant. Factors such as inflation and economic recession affect the prices of homes, thus diminishing your return on investment.
It is also imperative to note that you can buy a cheap home and renovate it to suit your taste and preferences. This will not only make your home suitable for you but also increase its value significantly.