Sunday, February 6, 2011

Rethink Renting

Rethink Renting

As we start the second month of 2011, it's time to evaluate the goals you set for yourself and compare what you planned to do and where you are in the plan.

For some this is something that is always left til "Tomorrow" even though there is a soft voice within you saying "Why throwing away $$$$ every year without a return on this investment?"

Stop don’t allow that voice to consume you, beat you up or crawl up in a ball eating chocolate. Let's examine your definition of Home Ownership. If your goal is to stop renting  and buy your first home this year.

Let’s examine the steps have you take to achieve this goal?  Intensions are great on paper. The challenge is to implement the intentions. Some examples would be, find a copy of your lease and review the renewal date. If it’s 6 months from expiration or less it’s time to pull your credit and make sure there are no inaccuracies that could disqualify you from getting the best interest rate.

Next you should consider your lifestyle…

Do you enjoy outdoor projects?  Cutting grass, shoveling snow or cleaning gutters?   YES…than perhaps purchasing a home would be right for you. If on the other hand your response is No, then unless you have the extra income to pay someone else to do required maintenance on your property a condo is your best option.

Do you have a hobby or interest that could disturb your neighbors if you lived in a condo? Some examples would be playing a loud instrument? Repairing vehicles on the weekend? Entertaining friends and family members til the early hours of the morning? How many cars do you have? In some condominium complexes there are restrictions on how many vehicles are assigned to a unit or how long a additional vehicle can be in a Guest Spot. So even though you may not enjoy the exterior maintenance of a home, receiving fines or letters from property management companies for a condo violation can make this choice a bad one.

On the other hand, perhaps you should consider a newer construction small ranch or bungalow with a small yard and have a heated driveway installed.  

Let’s move on to the next step …. Realistic Purchasing Power

Your loan officer will be able to establish your Exact Purchasing Power but a good rule of thumb is 4x your annual income.  Obviously if you’re thinking of purchasing a condo the condo fee, taxes and insurance will reduce your purchasing power. 

Taking the leap from Renting to Owning isn’t as hard as you think. Just like planning to rent you should consider your lifestyle. income and what you must have compared to would like to have in your new home.

To discuss this in more detail feel free to contact me direct and together we’ll make your goal a reality.

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