Choosing a new homeGetting a new home may seem like a very promising idea. This means you no longer have to pay the monthly rental to have a roof over your head. And since it’s your house, you can do anything with it. You have the freedom to do as you please. If you decide to dispose of this asset, you can sell it at a profit. But if you are thinking of buying a new home or downtown high rise condo but can’t decide which one to get, you need to follow the rule of thumb: In case of doubt, don’t do it.

Buying a new home is not a simple matter. It comes with a variety of responsibilities, liabilities, and headaches. So if you’re having second thoughts of going further with your home acquisition plan, you need to consider certain vital points such as your finances and lifestyle.

Admittedly purchasing a home mean high costs. This means you need to prepare for it. In addition, it wouldn’t make sense to get a home that’s beyond your means or needs. Why get a four-bedroom house when there’s only two of you in it?

Also, it is a bad investment move to get a home where you would only stay for less than three years in it. Unless you are regularly engaged in the business of selling real estate properties, the high transaction costs associated with the buying, selling, or otherwise dealing with these properties will result in financial losses on your part. Should you ever make money in these transactions, you will also be liable for taxes arising from its sale, which can be hefty and burdensome.

The questions to ask yourself if you’re contemplating of buying a new home is how committed are you. When in doubt and if it makes more sense to rent a home instead, opt for the latter. You owe it to yourself and your family to get it right with your decision.

Another factor to consider if you’re planning to buy a home is your ability to stay put in one place for longer periods. Don’t buy when you won’t be able to stay in one locality for years. If you move out of the vicinity, you may be forced to sell your home. The reality is that you could lose money if you sell sooner.

While contemplating on the idea of buying a home, you have to start cleaning your credit history as soon as possible. Purchasing a home will likely call for the need of a mortgage loan. In the months leading to your house hunting and acquisition, you might want to shore up on your credit. Fix any problems and discrepancies, which can ruin your chances of getting approved for a loan.

Everybody wants a big, elegant, and luxurious home. Unfortunately not all can afford to get what they want. After careful consideration of your income, expenses, and overall lifestyle, aim on a home that you can afford.

If you have school-age kids, look for a home within close proximity of good schools. This rule still applies even if you don’t have kids. Homes within school districts tend to have higher increases in property values. Should you buy it now and plan to sell it later, there is a big chance you can dispose of it at a selling price higher than your acquisition cost.

In all cases, it is best to seek professional help. The latter can help protect your interests and apprise you of the finer points of home acquisition to help you get a better deal.

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