Preparing for the plunge

The decision to take the plunge into the world of real estate ownership is a big one. There are a myriad of factors at play both internally (for you) and externally (for the banks, realtors, etc.). I recently read an article about how to decide if you are ready to purchase a house with someone else (Yes, it's getting that serious!). That threw in a whole slew of other factors into the complexity of this big decision. Today we're going to focus on you. Besides all the external and financial factors, are you ready to purchase a home. Let's dig in.

The first question is about maintenance. With a rental, you're off the hook. If the hot water heater stops working or the washer or dryer poops out, all you need to do is make a phone call and it magically gets fixed. It's also likely that your lawn is maintained, the shrubs are trimmed and the driveway or parking lot gets plowed after every storm. And if other items are damaged outside the home such as the siding, windows, chimney, or basement, they are not your responsibility either. Aside from a potential increase in your rent, you simply roll out of bed on a Saturday and hit the trails. It is someone else's responsibility to keep it all intact.

With your own home, this fact tends to go both ways. I have a friend whose idea of a great weekend is lawn and yard maintenance. And if I'm being honest, I do enjoy mowing my lawn and tidying up the shrubs and trees around the house. That said, I would much rather be out on my bike or hiking back in the woods. If this sounds like you, perhaps you should lean towards renting or at least purchase a home with little to no landscaping that needs upkeep and care. We've been working on our yard for the last couple of years to decrease the lawn and other items that require tending to. We'd rather be playing!

Moving inside the home, are you itching to make some changes and upgrades in here? "One of the more common complaints of renters is the inability to make improvements or changes in the home, notes Badger Realty agent, Ralph Cronin. Home ownership is right for you if you have a hankering (and the skill!) to redo the bathroom, take down a (non load-bearing) wall, or just generally make upgrades throughout the home. This is some of the more satisfying work I have done over the years and increases the pride you have in your home significantly.

With those upgrades in mind, are you ready to "settle down" and stay in one (this) place for a while. Generally speaking you should plant yourself for at least 5 years when you purchase a home. This provides enough time to make the down payment and initial mortgage payments start to even out a bit. If you jump ship in the first couple years, it is far less likely that you will justify those upfront costs. If that's palatable, then give your favorite real estate professional a call and get started. All of the other items on this list are just waiting for you to get involved.

One of my biggest concerns when living with (or attached to) other people (as in the same building, not "Stuck on You" with Matt Damon kind of attached) is noise. A friend was just looking at a condo (north of $400,000) that was on the first floor of a three story condo building. I cannot imagine a less attractive (or wildly overpriced) property to buy. You are most assuredly going to have noises from above the entire time those neighbors are home. As it is now, my roommate is working from home (of course) and I can't wait until the pandemic subsides enough that he can go back to the office. I miss my peace and quiet (read: silence).

The beauty of homeownership is it provides the peace and quiet (and lack of attached neighbors) that some of us require. Of course you can still purchase a condo or townhome that are attached, but maybe they are built well enough that you are afforded that privacy and peace. My dream is a home surrounded by 2,000 acres of national forest in every direction! Maybe I just need to purchase the Mount Washington Observatory! Can you imagine waking up to those views every morning. And maybe they'd leave me Nimbus!

Lastly, and I promised we weren't going to talk about money, is the money! Making monthly rent payments that are, literally, paying for someone else's mortgage starts to get painful. Of course coming up with the down payment and paying for any repairs and maintenance are going to be a bit more than your standard rent payments. But If the above items are enticing and you are sick of contributing to your landlord's retirement, it is time to start looking for your (maybe) forever home. Happy shopping.