Ready, Set, Buy Your First Home! Or Not.

With housing prices bottoming out in many parts of the country, more and more people are considering making the leap from being tenants to owning a home.  Before getting carried away by the lure of cheap prices and the freedom that comes with being a homeowner, buyers should consider the other side of the coin as well.

1. You Break it, You Fix It.

Whether it’s something as minor as a loose floorboard or a major malfunction such as your furnace dying, getting the problem fixed is entirely your responsibility.  Unless you're a handyman extraordinaire, you're eventually going to find yourself having to fork out a chunk of money to get someone to fix a problem.  Not a fun experience if you're on a shoestring budget.  Even if you have the money available, you might want to spend it on something you actually enjoy instead of something as exciting as having your roof redone.

2. Grass Does not Cut Itself.

If you haven’t had experience maintaining a yard, the amount of work involved may come as a surprise.  An unpleasant one, that is.  Your dream house may have a huge lawn with lots of exotic flowerbeds that look fantastic, but it won’t look that way for long without serious TLC.  If pruning shears and mulching aren’t your thing, consider a very basic yard with some hardy trees and shrubs.

3. Toilets and Computers Cost Money.

Utilities such as electricity and water may be included in your rent or condo fees.  You know that if you buy a house you’re going to take on these costs, but are you aware of how much money may be required?

Ask around.  Talk to people who own similar-sized homes in the same utilities market as yours.  If all else fails, do some online research to get an idea of how big of a dent these essential services are going to make in your wallet.

4. Your Neighbors Can Still See and Hear You.

After years of having to abide by rules about what you can and can’t do in your rental home, the idea of having total freedom in a house can be tempting indeed.  You’ll find out just how much bass your subwoofers can take, and you’ll paint your front door purple with green spots if you feel like it, thank you very much.

Not so fast.  Unless you have a serious amount of space between you and your neighbors, no amount of brick, straw, or mud is going to keep the next little piggy from being treated to your musical tastes if you crank it up loud enough.  If your home has adjoining walls with other units, your neighbors may have limited patience with you asserting your musical independence.

If there are no community bylaws that dictate what you can and can’t do with the exterior of your property then by all means, use it as a canvas for your personal expression.  But if your personal castle is the only house on the block that looks like it was painted by Salvador Dali during an acid trip, don’t be surprised if you’re not invited to the next block party.

5. Investment or Money Pit?

Many people view purchasing a house as an investment.  In the long run, real estate increases in value.  But what exactly is the long run?  Do you need to stay in the same house for 30 years to sell it at a price you would consider a significant profit?  If you know you’ll be moving within a few years, and if you’re not savvy about house flipping, talk to real estate and financial professionals to get an idea of where your money would be better spent: on a house, or rent.

A house can also be a good investment if it’s a fixer-upper that you transform into a hot property, but don’t be fooled by those do-it-yourself television shows make it look like a breeze.   Unless you truly enjoy renovations it can feel like one gigantic, never-ending headache.  Decide for yourself how comfortable you are taking on a fixer-upper that could be ripe with unexpected costs, turning your moneymaker into a pile of debt.

Buying a home for the first time can be one of the most exciting landmarks in a person’s lifetime, but rushing into a purchase can lead to regrets.  By making sure the risks and downsides of home ownership fit within your comfort zone, you’ll be on the road to making the right choice.