It seems that, while most people view themselves as being knowledgeable when it comes to residential real estate, many end up missing key points about the space and its ins and outs with regularity. Successfully managing the real estate portion of your life (picking the right apartment, negotiating proper rates, taking good care of your home, knowing when to buy, etc.) can be difficult, and without due diligence, it’s impossible.
Here are the five real estate moves you can make that will pay for themselves:
Rent Until You Can Stay Put
When deliberating over whether to buy or rent, keep the closing costs, fees, and commissions that come with buying in mind. Appreciation trends and local prices matter too, so be sure to check out a rent/buy calculator online to see what the trade-offs in your situation would be. A good rule of thumb is to rent if you might move in the next 3-5 years.
If You’re Ready to Buy, Remember the 28/36 Rule
With the real estate crisis being 8 years behind us, lenders are making mortgages more accessible; however, don’t go back to the old days of high borrowing, even if the lender is offering wiggle room. As a rule, housing shouldn’t take up more than 28% of your gross monthly income, and housing (along with debt) shouldn’t take up more than 36%.
Fix up Your Home the Cheap Way
If you’re looking to sell fast, don’t forget that curb appeal will get buyers in the front door. A fresh seal coat on the driveway will greatly improve your first impression on potential buyers.
Add Living Space
Believe it or not, you’ll get the most bang for your buck by adding living space. An attic bedroom and basement remodeling will average $51,700 and $65,400, respectively, but buyers will appreciate that you made space that was previously unavailable.
Ditch the 30-Year Mortgage
While many find the 30-year mortgage to be a lifesaver to the middle class, since it allows families to buy larger homes, a 15-year loan will force you to stay on a tighter budget. By committing before picking a house, you’ll be forced to save, increasing your chances of retiring debt-free (and the total cost savings are enormous).
Source: Time