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Posts Tagged ‘buying’
Buying an Older Home
Older homes have a lot of character, and are usually a smart buy. Even if the home could use a little repair, the majority of older homes are still in great condition.
There are a few pitfalls you should be aware of when purchasing an older property. Although many homes stand up well over time, some can develop serious problems. One of the most common issues in older homes occurs in the roof. If shingles fall off, or are in need of replacement, moisture can get into the main part of the roof and cause serious damage. If the roof appears to be sagging, or if you notice that the wood along underside of the roof, where it comes off from the front of the home, is in poor condition, have a home inspector take a closer look. Another sign is discoloration in the ceilings or walls within the home; this cold mean that there has been water damage from a leaking roof.
One of the most costly problems an older home can have a defect in the foundation. Cracks, bulges and indentations can be the warning signs of serious problems. Foundation repair is a long, complicated and expensive process. You might be better off letting that home go, and looking for another property you like.
The floors of an older home should also be examined closely. Current building codes state that floor support beams can only be a foot or two apart. In older homes, however, there might be four or five feet between each beam. This can lead to serious sagging and warping in the floor boards, and fixing this problem can be costly.
Like the roof, wooden exterior walls need to be covered with a protective coat of paint to keep them in good condition. If the exterior goes too long between paint jobs, or if a termite or carpenter ant problem develops, there can be a mass amount of damage to the wood. Replacing siding is an expensive repair. Check for “soft” or “crumbly” looking wood, especially along the lower edges and sides of the home.
Electrical systems are another problem area in many older homes, and they can be very difficult to detect. Faulty wiring is the cause of the majority of residential fires. You might also run into problems with ill-fitting outlets or too small of a power supply for modern usage. A home inspector will check for any obvious wiring problems, but you will want to be cautious when doing any repairs or remodeling. Also, if lights or outlets begin to flicker or seem to not be working correctly, call a certified electrician.
Many older homes also have inefficient windows and insulation. You may also be facing doors that do little to keep the home insulated. While making a large home more efficient can be costly and may not be essential to your ability to life in the home, it will save you a significant amount on your utility bills.
Why Not Buy Right Now?
Approximately 69% of household own their own home. Americans own their own homes. Of the rest, many would like to, but can’t because of financial issues.
What about the rest? There are many great reasons to own a home, but there are also some reasons people give for not buying a home. Here are some of the most popular.
1. Renting is a bargain.
There is some truth to this. If the water heater breaks in the middle of the night, you aren’t on the line for a price repair or replacement. There are no property taxes, and the money you would be putting towards a down payment could go for stocks or other investments instead.
The problem with this idea is that renting isn’t really a bargain. You might be paying $700 or more for a small one bedroom apartment, when just a little more each month could put you in a nice three or four bedroom home. That $700 could be going towards building equity, instead of lining the pockets of your landlord. True, you’ll be responsible for repairs and renovations, but these can also improve the value of your home, building your investment.
2. Owning a home alone? No thanks.
More women give this excuse than men. They are hesitant to buy a home because they aren’t married. Owning a home on their own would be a lot of work, and no woman wants to buy a big home, and then never end up settling down.
There’s no reason to wait for Prince Charming to show up and sweep you off your feet before you buy a home. If you have the financial means, and the interest in home ownership, go for it! It can build your credit and equity, and make it easier for you to move into a new home once you have gotten married. It may also help you to find a better relationship down the road; women who have gone through the process of choosing a home tend to be choosier about relationships, too.
3. Owning a home is overrated.
Right. These people rather than jumping into the joy of home ownership, would rather preach to others about the joys of renting. Maybe they’re afraid of growing up all the way, and turning into their parents, or becoming the sort of person who host dinner parties with five course meals instead of take-out or pizza.
Owning a home is a responsibility, and not one to take on if you’re not ready. Renting out of protest to owning a home, however, is silly. If you prefer renting, that’s great. Just do it for the right reasons.
4. What if something happens?
Out of all of the reasons not to buy, this one carries the most weight, especially right now. You could lose your job, the roof could cave in, or a fire could burn everything to ash. You never know. Then where would you be?
The best you can do is plan ahead. Make sure you have a great insurance, and enough money in your savings account to get you through any hard times. There’s always something that could go wrong, whether you are buying a new home or simply getting out of bed in the morning. But I’m willing to bet you don’t stay in bed all day, worrying about what ifs. Buying a home is a risk, but it could also, more probably, be one of the best decisions you’ll ever make.