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What To Consider Before Buying A Home
I Reneged On The House
A while ago, I made a down payment for a house, and then I reneged. About a month after, I took off to Europe for over a month. I thought further about it and reminded myself for the past decade, I’ve lived in seven different states. I realized I’m not ready to stay put quite yet.
But wait, I could just rent the house out; this is true, but then the question comes down to, do I want to handle that responsibility? I’m unsure. I have considered placing my family in the home to maintain it, but for now, the house thing is on the back burner.
I still think about the house, and a part of me desires to still go for it, but the other parts remain hesitant.
In The Meantime, REITs Will Suffice
Just because I’m not buying a house for myself doesn’t mean I’m shying away from real estate, though. Over the past two years, I’ve started to hone in on my real estate portfolio. To date, I’m obtaining consistent properties from REITs, and I obtain part ownership in multiple properties every month. Not only am I invested in not only residential neighborhoods but also industrial buildings and rental apartments, and rental homes.
What To Consider Before Buying A Home
There is no magic formula for everything you should consider before you buy, but there are some key things you should think about:
Have no less than three different income sources. Diversifying your income will always leave you with two income sources if one falls through. If two income sources fall through, you still got one left and can recover the other two.
Eliminate debt. A house payment, bills, maintenance, and taxes will destroy your finances if you’re ill-prepared. I’ve seen it happen to people close to me first-hand. If you carry considerable debt, eradicate it before taking on a mortgage to give yourself more breathing room.
Emergency fund. At a minimum, you should have a one-year emergency fund if you own a house. Put yourself much further ahead by establishing a two to three-year emergency fund.
What’s it gonna be for? If I’m buying a house, it’s going to be for one of two things, owning or renting. Do you plan to be home a lot? Do you plan to travel a lot? Do you plan to have dogs or kids? Do you want a house for yourself or to rent out? Take all of these things into consideration before you buy the house. If you plan to stay in the home long-term with dogs and kids, buying a house with a non-existent yard might not make the most sense. Always think long-term – unless you’re seeking a short-term solution for your housing needs.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.