Key Points:
- Purchasing real estate is often the biggest financial decision for many, but it can offer significant rewards.
- Five common fears associated with buying real estate include: property devaluation, high maintenance costs, buyer's remorse, inability to keep up with mortgage payments, and being overwhelmed by mortgage complexities.
- Strategic planning, thorough research, and financial preparedness can help mitigate these fears and make real estate investment a sound decision.
Taking ownership of something instills a great sense of pride in all of us; be it a new watch or a designer bag, the feeling of calling something our own can't be replaced by anything else. In the current shaky economy though, when faced with a decision to buy something we often find ourselves second guessing our every move, and this feeling of doubt and dread is increased by a tenfold when the thing that we are considering to purchase is real estate.
Yes, buying real estate is no doubt a big decision, for some it's the biggest financial decision that they'll ever make, but the truth is that this “big” decision of yours also helps you reap “big” rewards.
It's no secret that everyone wants to win big which is why you need to get over the five common fears that you are faced with when deciding to buy real estate.
Fear # 1: The Property Will Lose its Value
It's true, properties do lose their value, even if no natural disaster hits. Neighborhoods can lose their appeal if new neighborhoods are built nearby even a new construction such as a highway or a landfill can make property lose its value.
A consistently poor economy can also wreak havoc on real estate prices.
Though the situation looks bleak, as a shrewd real estate buyer you can always benefit from doing thorough research and thinking on your feet. Always look into buying real estate in a place where the houses are well-kept and there is very low crime rate.
Having good quality schools in the area is also a pro for your property, plus as a precaution you should always inquire about any future developments in the area of your choice by the respective city government.
Fear # 2: High Maintenance Costs
It's a no brainer that if you want to maintain the value of your property you have to maintain the property itself, which of course leads to maintenance costs.
And though maintenance costs aren't something you can avoid, there are ways that you can make sure that they stay within your reach such as buying a property which has been well maintained; a house which has recently been upgraded (for example has had new plumbing or a new roof installed etc.)
Instead of going for an old property and renovating it purchase a new property, most importantly however try to fix small faults to stop them from turning into major disasters.
Fear # 3: You Will Regret Your Decision
Buyer's remorse is a common phenomenon no matter what you've purchased, with purchasing real estate of course the regret is heightened, but this is no reason to back out from making a smart financial decision.
To ensure that you don't have any feelings of guilt after you've purchased the property just be thorough about everything before you sign your name on the contract.
Look at as many houses as you can and then make a logical decision, and to make sure that you don't jump into anything try sleeping on your decision for a few days.
When you've put ample thought and consideration into the purchase you won't regret buying it, period.
Fear # 4: You Won't Be Able to Keep Up With Your Mortgage Payment
This fear is as real as it gets, many buyers forgo their decision of buying a property that they think is good for them just because they're afraid that they won't be able to pay the mortgage.
What if they lose their job? Will they end up losing their property too?
Though, this notion is no doubt scary, you can take certain steps to avoid this ever happening to you, for this purpose it is always wise to set up an emergency fund.
Life is unpredictable, you don't know what's going to happen the next minute let alone after a month or a year which is why it is always better to prepare yourself.
Make sure that you're insured and that you have money saved in case of an emergency.
Fear # 5: You will be stumped by Tricky Mortgages
Not everyone that buys real estate is really well versed in financial knowledge, which is why many potential real estate buyers feel that they won't be able to understand and hence pay their mortgages properly.
This being the case, you can do two things to remedy your situation, first of all you should read up on how mortgages work and see if you'll benefit more from a fixed or an adjustable rate mortgage.
According to Edward Powell, the chief consumer officer at Lending Tree in Charlotte, N.C, a fixed mortgage rate is a safer bet as the monthly payment remains the same over the entire life period of the mortgage as compared to an adjustable mortgage rate which changes with time.
To make an informed decision you can use the various rate calculators found online.
Once you've put these fears to bed, buying real estate becomes a lot easier but also more financially advantageous.
