How Long Do You Plan to Live in Your Home? Does it Matter?
Especially when you're thinking about buying, you should know how long you plan to live in a home. You want everything to be cost effective for you, and time plays a role in your outcomes. How does the amount of time you plan to live there make a difference in your decision to buy or rent?
When purchasing a home
, there is a substantial down payment you will need to put out. Then, you will need to factor in the cost of paying a realtor
to help you. During the final stages of getting into your home, you will need to pay closing costs. These things will cost you thousands. What does this have to do with time?
If you are in a home for less than three years, its value may not increase enough to cover all of the expenses you put out to get into the home. That's why the standard minimum time you should live in a home you have purchased is three to five years. This can vary depending on the real estate market
you're investing in - for better or worse.
Make sure you do the research based on how long you want to stay, and the projected market value of your home at the end of that length. If the numbers look good, it may be a great time to buy!
As with any big decision, buying a home
takes some planning. Map out a five-year plan, will you be living in your home for the duration of that time? If not, what will you do with the home? Will you lose money buy turning it into a rental or selling? It's always a good idea to consult a real estate broker
to get a fair forecast of the real estate market. You don't have to live in your home longer than you desire, but predicting the financial outcome of and assess the outcome of a move from the property is always best. How long are you planning to live in your home?