Congratulations on finally earning a hefty sum of money enough to buy your own home! All your hard work has finally paid off, and you dream of nothing but calling a nice home your own. However, real estate experts recommend holding the thought, and holding on to your money instead. The key is remembering how real estate properties appreciate over time. A common trap home owners get into when they purchase a home is having to sell it almost as fast as they acquired the property.
But selling a property too soon after purchase will not allow its value to appreciate, so you may even acquire losses instead of gains. If you purchase a property with a 10% down payment, this could really be a problem for you. Usually, real estate commissions get six percent of the property’s price at the time of sale, so the closing costs can amount to 1.5%. Notice how this amount can override appreciation on the property’s first anniversary. Imagine if you had to pay a small amount as down payment, you may even have to add extra cash just to get your home into the real estate market and sell it.
If you are at crossroads and are experiencing life crises, it would be a great idea to put off purchase of a new home, especially because you want your home to be filled with positive energy and not anxiety. People moving to different counties or states, graduates fresh out of college, employees with unstable jobs, and spouses experiencing marital woes are usually not in the best position to buy a new home. People who are moving from a different state must try out living in a new one by renting and studying the real estate market of the location they’ve moved to.