Certainly, owning a house is a common goal, but behind the desire are fears that prevent people from purchasing their dream house. Investopedia has identified the top five reasons which may hold people off from finally buying a property.
1. Loss in property value
With or without a disaster, the value of homes can decline. Likewise, the country's economy may keep home values down. Nobody can predict what will happen to home prices, but there are precautions that a buyer may take, like inquiring from the city government regarding the future developments that will happen in the area where you plan to buy, choosing a home in a well-kept community/ area, with nearby schools and a low-crime rate.
2. Overwhelming maintenance costs
Brendon De Simone of Fox Business writes that renovating, fixing and repairing are on few buyers' wish list. However, the truth is all homes have its upkeep costs and many, in fact, have huge bills for its maintenance. As these costs are unavoidable, Investopedia recommends that the following steps be taken as preparation:
- Conduct a home inspection before you buy
- Choose a home that has been well-maintained
- Buy a home with its major components recently upgraded or replaced
- Purchase a new home (but be aware of the undiscovered defects)
- Have a regular maintenance of your home to prevent small problems from becoming major ones
- Set aside and regularly add to an emergency fund intended for home maintenance
3. Buyer's remorse
If you are afraid of choosing the wrong house, then perhaps that's because you don't know what you want. Come up with your wish list and include necessary and optional features for your home. Compare many houses and do not go beyond your budget. Also, do not be afraid to walk away from a house, just think that there will be new home coming to the market.
4. Being unable to afford the mortgage payment
To abate the fear of being unable to pay your mortgage due to sudden unemployment, sickness or going over your budget for housing, be sure to have an emergency fund set aside. Likewise, before taking on a mortgage, come up with a budget to compare your income and your expenses. Trying to make a fake mortgage payment will give you a better idea of how the mortgage will affect your finances. Getting a health insurance will also help before you make a purchase.
5. Fear of tricky mortgages
You need to educate yourself about how mortgages work. Don't buy a home until you understand them. If still unsure, get the time-tested, fool-proof 15-year or 30-year fixed-rate mortgage.
