Many Americans are planning to purchase a home this year. It’s estimated that about 50% of the population is looking to purchase a home this year and that about 80% are looking to buy a home in the next five years. Many of these Americans are in fear of rising home prices. They consider that the low mortgage rates this year can balance the expensive homes in the market right now. However, purchasing a house so hurriedly because of circumstances might not be a good idea, because aside from the rising prices, you should worry about your current lifestyle and planned lifestyle in the future.
Rising Prices of Homes
The rising prices of homes this year have placed many Americans in a serious predicament. Either purchase a home this year and let the low mortgages balance it out or save the money you have this year in hopes of better prices in the future. Experts believe that prices might lessen in the next few years because materials will become widely more available once the pandemic has been controlled.
But some experts believe that it’s wishful thinking. However, the increase in prices shouldn’t force you to change your lifestyle to accommodate purchasing a home. Instead, the home you purchase should accommodate your planned lifestyle in the future. Here are some lifestyle considerations you should make when purchasing a home.
Location plays a big deal when choosing the right home for you and your family. You don’t want to choose a home that’s a couple of miles away from your work. This can push you to spend more money on commuting or for the gas you’ll be using for your vehicle. It’ll also affect your overall schedule, like what time you should wake up and what time you should start heading home?
If you spend too much time on the road, that’s less time dedicated to your hobbies and friends. Also, time with your family is lessened as well. If you think this is a good trade-off for a faraway dream home, then go for it. If not, consider purchasing a different home or renting one closer to your work.
If you’re the kind of family who loves to travel, then purchasing a home right now is a bad idea. Consider the costs of purchasing a home and maintaining it while you’re out traveling. You’re already spending so much money on travel, so why not concentrate on that instead? Maybe rent a home or an apartment instead of purchasing a home this year. Additionally, you might end up living in another country because of all the traveling you do. So purchasing a home haphazardly is only going to cost you more money if you like traveling with your family.
You also have to consider your distance to affordable recreational activities. Some villages may offer recreational activities, but they are at a much higher expense due to the location. It’s good to choose a close to the commercial area because all kinds of recreational activities such as gyms, sports centers, and more are close and much cheaper than villages on top of the mountainside.
Building some of these facilities in your home might also be a good idea. It doesn’t take much to build a gym aside from some engineered timber flooring, gym mats, and gym equipment. It might cost you a couple of thousand dollars to build it, but hey, at least you no longer need to commute to the city. This can save a decent amount of money in the future.
Consider Your Five-year Plan
Before purchasing your dream home, you should consider your five-year plan. Where do you perceive you’ll be in the future? What kind of job do you have? Will your children be in college by then? All of these questions and more should be dictated in your five-year plan. With the three lifestyle considerations we have stated above, ask yourself if do they coincide with your five-year plan or not? If they don’t, like, for example, your children’s university will be too far away from your home in three years, then maybe purchasing that particular home isn’t right for you.
Remember that our lives change over time. What seems to be permanent now could be temporary tomorrow. Purchasing a home is permanent, but the way you live might be temporary (e.g., Traveling a lot). Without accommodating your lifestyle in the future, your home becomes an investment you’re planning to sell in the future.
Ultimately, purchasing a home comes with personal choice. Don’t let it be why you have to change your lifestyle because you might have to spend more while not gaining anything in return. Think about your plans and whether you see yourself living in this particular home for the next ten years. If not, consider renting instead. It’s so much better now that homes are so expensive.