Experts may ponder the relative merits and demerits of trying to time the housing market to buy and sell homes at a profit. But the fact is most people buy a home primarily as a place to live, apart from any hoped-for return on their purchase as an investment.
Homeowners tend to own the same home for about five-to-seven years, on average, with six years being the typical duration. In that time, house prices overall may rise, fall or stay level, and the value of an individual home may fluctuate or stay level as well. Add transaction costs to those long-term market cycles and there is all the more reason to consider homeownership is a long-term commitment.
Plan for your future housing needs
Buying a house for the long haul means you should plan for your future as well as present housing needs. Examples of long-term considerations might include more bedrooms and square footage, and a larger backyard if your family is growing or a single-story home, less acreage and easier access routes if you’re looking forward to your senior years.
Options to alter a not-quite perfect home to meet your future needs are worth consideration too. A smaller house on a larger lot might be a good candidate to add additional space or a house with multiple small bedrooms might be suitable for remodeling into a more open floor plan, for example.
Local development can change neighborhood characteristics
Another long-haul consideration of homeownership is the location of the home with respect to planned community development. Many localities have a 10-year plan for new schools, roads, transportation and other amenities. Anticipated changes in zoning laws and school district boundaries can affect the relative desirability of different neighborhoods as well. Some homeowners welcome new development while others don’t. Either way, you should educate yourself about planned changes in the area where you intend to live.
A buyer’s market offers more options
Buying a home for the long haul means you need to be more selective about the home you choose to purchase. That’s especially true in a buyer’s market, in which the inventory of for-sale homes exceeds the immediate demand to buy those homes. Rather than being forced to make a quick decision by the demands of a fast-paced seller’s market, you can add a few more items to your wish list and take a bit longer to choose the home you want to own.
Those additional characteristics might include mature trees, a corner or cul-de-sac lot, more acreage, a larger garage or other amenities of the property or location. Make a list of what you want and make sure those characteristics are present in the home you choose to buy. After all, the home you buy may be yours for many years to come!
Published on April 12, 2007