The real estate industry is one of the most stable economies there is. If you’re going to sell your house to buy a new one, this can mean good news as it means that you’re not going to have a hard time looking for a buyer. Henceforth too, you can sell your home at a reasonable price. As a potential buyer for your new home, it can be both a good and bad thing. Good, as you’re going to have many options. Bad, because it can mean that your purchase price might be expensive.
However, there are also many new houses to choose from that will fit your budget. You’ve only got to make sure that now really is the right time for you to buy a new house, even when you still have an existing property in your hands.
There are times when it’s better to buy a new house now despite the cost that it entails rather than maintaining your old home, which perhaps is also screaming, “Sell me!” How can you determine that buying a new house is a necessity for you and your family at the moment? Below are some of the telltale signs.
1. Your Credit Score Has Improved
This section applies to those of you that are still renting a small apartment, or a bedroom, or a house that’s too small for the size of your family. You may be stuck in those situations simply because your credit score at the moment isn’t that great, yet. This means that you can’t qualify for a better mortgage that will afford you a bigger and more comfortable home.
If you now have a healthier credit score, then take advantage of this time now to buy a new house. There’s no other better time to do it than now. Else, if you wait until later, you might not be able to do so again. A good sign to determine that you can now afford to change your current living situation is that you can afford to place in a higher down payment amount. In simpler terms, you’ve got more money coming into the bank. This fact can give you better options for significantly lower interest rates and better terms when you can put more money upfront for your down payment.
If this isn’t the case and you’d like to work towards improving your credit score, here are some tips try out:
- Stay on top of all your bill payments today, including credit cards, car loans, and other bills
- Open new credit accounts only when needed, such as now, for your housing mortgage
- Don’t close any of your credit cards that are no longer in use
2. You’re Moving To Another Area In The State
Has your boss told you about your potential move to the opposite end of the state? Do your kids need to go to another school, which is quite far from where you live? Change is the only thing that’s constant, the saying goes, and there’s truth to this. You’re going to find yourself in many situations in your life where you’ll have no other choice but to buy a new house, even when the condition of your current home is still good. If this is the case, here are some steps to buy a house.
For example, yes, you may still be in New York. But what city will you be transferred to? New York is a vast state. If it’s unproductive, time-consuming, and expensive to commute or travel back and forth to go home, then it might be worth investing in another house instead. As you look for new houses to move to that’s closer to your new life conditions, you may also want to sell your current home. That way, your move doesn’t necessarily have to be so expensive.
3. You’re Experiencing Changes In Your Long-Term Living Situation
This applies to those of you who have significant changes in their life. For example, older parents with no more kids at home, who may also now be living alone as their spouse has passed away. In this case, you might need to move to a smaller house. Perhaps it can even be those of you with growing family size. For instance, your wife is pregnant again this year, and there’s no way that two kids and two adults are going to fit in your one-bedroom apartment. In this example, you need to upsize.
If you’re experiencing changes in your long-term living situation, then that’s another sign telling you to go and buy a new house. In these instances, purchasing a new home is no longer just a want. It’s a need that you also couldn’t turn a blind eye on, being that it affects your long-term living situation.
Here, if your current apartment is still in an excellent condition and you’ve got enough in your savings also to buy a bigger home, then you might want to hold on to your home as you move to your new one. This old home of yours can be a good source of passive income-earning opportunity. Apartments are easy to rent out, and you can make a good income on the side from the rent payments that you’ll be receiving. That way, you’ve also got additional income coming in to help defray your more significant mortgage expenses and other incidentals.
4. Your Family Is Outgrowing Your Home’s Features
Apart from upsizing or downsizing, another good sign that you need to buy a new house is that your family is currently outgrowing your home’s features. By this, it means that there may be features of your house now that’s adding up to your monthly expenses, even when they’re not in use so often. Hence, this cost and of holding on to these features is no longer worth it.
For example, your house now was a paradise for your three young children, growing up. It has an outdoor playground, a big lawn, rooms for each of the children and an indoor playroom, plus a swimming pool. When your kids were living with you, you were able to make very good use of these features. But, now, they’re all adults off to the university and their professional lives. How often is it that they’ll actually visit and get to enjoy these features again?
When, by the conditions of your family life, you know for sure that your family has already outgrown many of the features of your home, then it’s a sign that you need to buy a new house. You don’t need to keep a five-bedroom house when now it’s only just you and your husband left. What will you do with that swimming pool that’s only costly to maintain?
Here, downsizing is a good idea. You can sell your current house now and buy a smaller one. If your kids don’t like to sell the house that they grew up in, you can have it rented out as a vacation house instead.
5. Your Neighborhood No Longer Fits You
Living comfortably in a place that you’d call your home isn’t only dependent on the house per se. A lot of it also has to do with the setting of your home. For example, for couples and young professionals, living in a high-rise building isn’t so much of a worry. But, this can be uncomfortable for aging adults, and even those with young kids. You’ll feel compelled to have a garden for your children to run around in.
Perhaps even it’s the other way around. You’ve long lived in the suburbs with a neighborhood of young children. But, because you’re alone and a professional in the big city, you’d rather be living in the metro. When you feel that your neighborhood no longer fits you and your lifestyle, then it’s a sign also that you need to buy a new house. In so doing, you can create a higher sense of stability in your happiness and comfort when you know that your current space and the environment surrounding it sparks some joy in your daily life.
6. Your House Is Aging Beyond Repair
This applies especially to those of you who also aren’t the first-time owners of the house that you currently live in. Is your current home now one that comes from so many years and generations of dwellers? Has it aged so much that repairs are too frequent and costly?
When major renovations and repairs need to be done, ask for a quotation from a contractor. Then, calculate whether or not it’s worth spending on a high cost of renovation, or if you’d rather sell the house and buy a new one instead. In most instances, it’s better to buy a new house instead. That way, you’re assured of a higher possibility that you’ll no longer have to go through frequent and costly repairs again.
Because of the strong real estate market and position today, it should come as no surprise to you that you’re going to see so many new homes. Some of these houses are owned by first-time homebuyers, while some already own multiple properties. However, just because everyone else is doing it, that doesn’t mean that you should jump right into the bandwagon, too.
If you have a popular place to call you home and it serves its purpose still very well, then no need for you to get a new one. But, if you experience any of the signs enumerated above, then it’s good and strong enough determining factor that yes, now is the right time for you to buy a new house.