As more and more millennials are purchasing homes, many are seeing their home as their first big investment, but how much should you put into it? Berkshire Hathaway HomeServices Chief Financial Officer Andrew Braun has answers.
While renting and buying each have their own disadvantages and benefits, investing in a home can make the most financial sense. “When you buy a home, you lock into a mortgage rate and after paying for fifteen to twenty years, you’ll have an asset and you build up equity. When renting, your money is just going right to the landlord.”
But this doesn’t mean buying a home is right for everyone. Braun recommends sitting down and being realistic with your budget and factoring in all of your finances before taking the next step.
“You really want to look at whether you can afford the down payment and the monthly mortgage payment of the home. Have you paid off other debts, like student loans and car payments? Are you planning to stay in that location long-term?”
Braun says there are a lot of other factors, such as maintenance, that need to be considered when looking to purchase a home. “Individuals have to consider all the responsibilities and expenses that come with owning a home. I think you have to ask yourself if you’re ready to take on those obligations versus calling the landlord and asking them to fix it.”
There are a lot of questions that come up when looking to purchase a home, especially for first-time homebuyers. For more information on how to find a trusted advisor and to begin your journey to buying a home, visit http://bhhsinrealty.com