Buying Property: Why Age Shouldn’t Be the Sole Factor in Your Decision
You’ve saved enough dough to acquire a new home? Right on. But as you mull over the choices, you might be tempted to spring for a home with timeless charms, like an old Victorian. Sure, it may look beautiful with its intricate architecture and have lots of character – but let’s face it; you could spend a fortune on repairs or upgrades.
Luckily, you can take your pick from a range of stunning properties for sale in Tenerife. Even so, what other factors besides age should you consider when scoping out potential properties?
1. Location
They say location is everything. For instance, you can expect a beach-front home to cost more than an inland property. Likewise, properties in major cities have higher real estate values than homes in the countryside or suburbs.
Generally, the closer you are to essential amenities, such as schools and hospitals, the more expensive the property will be. Nonetheless, you can get a bargain if you know your facts. For instance, properties in up-and-coming locations tend to be relatively cheap, but may offer a significant return on investment over time.
Also, how accessible is the property? Can you take a bus or train to your destination? Are there walkways or bike paths near your home? Does the neighborhood have an abundance of parking spaces but no sidewalks?
Generally, accessibility should be a key consideration, especially if you don’t have a private mode of transport. If the area is too hard to reach or navigate, you may need to reconsider your investment.
2. Cost of Living
No matter the property’s affordability, its cost shouldn’t diminish the bigger picture. What’s the average cost of living in a specific area? Is the local grocery store super expensive, or can you find affordable alternatives nearby? What about utilities and home maintenance fees?
These details should help you determine whether it’s advisable to acquire property in a given area. If the cost of living is too high, it could be a deal-breaker.
Sure, your budget for acquiring property is paramount. Even so, if you want to get the most bang for your buck, consider the cost of living, as this determines whether you can afford your dream lifestyle.
3. Duration of Residency
Do you intend to stay in your home for twenty years or five? Or are you looking to buy an investment property you can rent or flip quickly?
If you’re uncertain about the duration of your stay, acquire property in a location you can easily lease or sell without incurring losses. Besides, renting could be more economical than buying if you’re a short-termer.
Even so, market dynamics may preclude you from renting property for an extended period. Thus, consider the rental market to estimate how long it will take to break even on your investment.
Generally, if you buy a home, it’ll take roughly seven or so years to break even – after factoring in the cost of acquiring and maintaining the property. As such, it might not be prudent to invest in a new home if you only intend to live in it for two years and expect to recoup your expenses.
4. Size and Condition
A bigger house on a large plot can cost more than the same size home on a tiny lot. You could also spend extra for an additional bedroom or bathroom if you plan on having guests over often. Similarly, older homes tend to require more repairs and upgrades than newer ones, meaning you may spend extra on refurbishments.
5. Style and Design
Do you prefer a craftsman home or a modern den? Or does a traditional ranch-styled dwelling tickle your fancy?
Aesthetics can also make or break your decision. As such, consider the style and design of a property before investing in it. You might love living in a rustic farmhouse with a wrap-around porch – until you realize such properties are more expensive than others with similar features. Thus, ensure you’re willing or able to pay extra for your desired style and design.
6. Job Security
Picture this; you get a mortgage to acquire a home, and months down the line, you lose your job. How would you pay for the mortgage?
Unemployment can be a significant setback, affecting your ability to service loan obligations. As such, consider the job market before deciding on a property. If you’re unsure of your job security, it’s more prudent to rent or hold off until your income is stable or steady.
As you explore options for acquiring property, you won’t go wrong by having the big picture in mind. Consider the multiple variables above so that you can take the plunge with reasonable certainty and confidence.
