The thought of buying your very own home can be both intriguing and overwhelming all at once. Maybe you’ve spent your entire life imagining all of the tiny details that your dream home will have. Initially, deciding whether to start looking for apartments for rent or take the big step into homeownership can be mindboggling. First off, relax…your hesitation is perfectly normal and believe it or not, even healthy. Making the decision to move from renting to buying is a huge commitment. We’ve often heard the benefits of homeownership. Are there any benefits tied to a rental property as well? Being well-informed ensures that you to make the decision that is best for YOU!
When making the transition from apartments for rent into properties for sale, the first step is to check out your cash situation. Homeownership is a long-term investment so being clear on your finances is extremely important. There are a few key points you may want to consider.
- Account for your up-front costs. If you are a first-time potential homebuyer, you may not be fully aware of what is expected of you before and at your closing. Most sellers will require a good faith deposit to even consider your offer. Combine this with the costs of your appraisal, inspection, down payment, and first-time homebuyers insurance (if required by your lender), among others, and things start to add up quickly.
- Get familiar with your credit score. Fixing your credit can be a long and tenuous process and is an integral part of home buying. If you don’t have a decent credit score or a co-signer, now may not be the time for you to make the transition into home ownership. Spend some time paying off bad debts to raise your credit first.
Contemplate Your Location
One of the luxuries of searching for apartments for rent is the vast array of models and locations available to you. With relatively short rental agreements, you won’t find yourself locked into one place very long. Homeownership, however, is a much longer commitment. There are a couple key questions you may want to ask yourself here.
- How long do you plan on staying? If you have a job that frequently causes you to relocate or a free spirit that finds you regularly on the hunt for new scenery, homeownership may not be for you.
- What will the costs of re-selling your property be if you do decide to relocate? This is a question that’s often overlooked. We tend to see only the potential profit in home ownership and crunch the numbers associated with the initial purchase, but selling has many associated costs as well.
Consider the Future
If you’ve crunched the initial numbers and determined that you’re more likely to stay in one location than to relocate, there’s still one more avenue you should check out before leaving behind the world of apartments for rent and jumping into homeownership. Although we have no way of being prepared for everything the future may bring, it’s important to factor in the possibilities.
- There are many long-term costs associated with homeownership. The excitement of your initial purchase eventually wears off often replaced with the reality that you are now solely in charge of your property. There will be no landlord to call if the air conditioner breaks or the appliances go on the fritz or your house floods. There will be nobody to take care of landscape maintenance either.
- Unexpected life changes can occur at any time. It’s important to make sure that you have a reasonable cash reserve. Set aside some cash for unforeseen events such as illnesses, job loss, and change in career.
- Life changes and so do you. Before making this giant transition, you have to consult your future self. What is the likelihood that he/she will be happy with your purchase decision later down the line? Think about the changes you are going throughout the course of your homeownership. Do you have the means to make those changes reality and the patience to have it like it is currently?
Looking for Great Apartments for Rent in Hattiesburg?
So maybe you’ve read through this and there are a few things you still need to consider. Working with a skilled rental property manager comes in quite handy. At Hattiesburg Apartments, our team of accredited property managers is determined to make your rental experience a success. Search through our properties today!