We all want to be young. But when it comes to owning a home in Albuquerque, even the most mature of us can want to run and hide like a little kid when problems arise. If you’re looking to buy your first home in Albuquerque and aren’t sure you’re up for the responsibility, asking yourself these questions may help you decide.
Do you know the true costs of homeownership?
Yes, you have a handle on what your principal, interest, taxes, and insurance are going to cost. But have you factored in the other costs? Homeowner’s association fees, tolls, gas, and other commuter costs, landscaping help, and increased utility costs could all add to your monthly expenses and push the affordability factor out of reach.
Are you aware of closing costs?
Many first-time buyers in Albuquerque aren’t prepared to pay thousands of dollars on top of their down payment. Getting an estimate upfront is key to making sure you have what you need to close.
Are you being realistic about home appreciation?
Home buyers love to look at home appreciation over a period of time and then use those numbers to project how much their home value will increase in the next few years. It’s human nature. But it can also be dangerous if you’re counting on that appreciation to move up or on in a few years’ time.
It’s important to remember that the real estate market in Albuquerque is cyclical, and, while short-term gains are great, historical long-term gains also make real estate one of the safest and most successful investment strategies.
If your home does increase in value, what will you do with the equity?
Hopefully your answer wasn’t, “Go shopping!” or “Buy a new car!” That kind of thinking can get you in trouble. In fact, it did get a lot of people in trouble during the last downturn. Responsible use of home equity is key to remaining financially stable. When you use your equity for things other than home improvement, you’re increasing your monthly costs but not your home value. Now it costs more to live in your home, and it’s at risk if you get in over your head and default on your loan.
Are you planning to run out and furnish every inch of the home right away?
Doing so could put you several thousand dollars in additional debt just as you’re transitioning to homeownership. Financial experts recommend easing into your new home and making sure the monthly output is what you expect and can manage before taking on too much additional debt.
Do you pay your bills on time?
There are those of us who like to pay bills right when we receive them and those of us who pay them when we get a notification that we’re about to incur a late fee. We’ve been both of those people. If you’re not used to, or fond of or good at, managing your bills, you may find yourself with no water or electricity.
How good are you at facing your issues?
We can procrastinate with the best of them. We can put off fixing a problem. We can wait too long to take care of a little problem in the house and turn it into a big, huge, much more expensive problem. Being a homeowner means stepping up when the house needs you. And it will need you at some point. Are you ready to make it a priority?
Would you rather take a bucket list vacation or fix up your kitchen?
A trip to the see the Northern Lights would be amazing, but would it be better than being able to run your hands over your new Quartz countertops every day? You may need to make some hard decisions as a homeowner. Whether or not it’s worth depends on how important the goal of buying a home is.
Owning your first home is a goal that can be succesful, if you’re mature enough to make smart decisions and can take on the responsibility.
Make sure to join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.
HOT HOME LISTING OF THE WEEK!
3 Bedrooms / 3 Bathrooms (1 full, 2 half) / 1888 Square Feet
Magnificent Rex Wilson remodel of this amazing Pueblo style home. From the minute you enter you will feel like you are on vacation (feels like a Taos Hacienda), beautiful hardwood floor, custom carved beams, corbels kiva fireplace, leads into a wonderful custom kitchen. Skylights bring in natural light, and Pella windows, hardwood doors updated electrical and an amazing wrap around covered patio embraces beautifully landscaped private oasis. ”And” a detached casita heating cooled, presently used as a theatre room (projection equipment, screen and couches will stay) and of course a totally remodeled bathroom, and could easily be an in law quarters.
Contact the Sandi Pressley team for additional details!
Get your Morning Inspiration with the Sandi Pressley Team