Fear takes the fun out of a lot of things, but reasonable fears can be handled through common sense.
Begin by working through the worst/best case scenarios, fearlessly examining the most concerning questions.
What if we can’t make our payments? This question can be balanced by a best case. What if we manage our money so well that we can make double payments? It comes down to your confidence regarding managing your money. If you aren’t sure, ask someone whose money management style you admire.
What if the value of our home goes down? Would you feel as fearful if you asked whether your property will go up in value? All property requires maintenance or will deteriorate in value. Prevention will be having enough budgeted to perform maintenance. View properties surrounding the home you are considering. There will always be a buyer for an attractive, well-maintained property. The value will be there.
According to Michael Matthews, broker/ owner of Orange Key Realty, “Real estate isn’t a liquid asset and not as volatile as you think. It goes down slowly and rises comparatively slowly. Home values may get resuscitation after a few years. Always work to keep your property in desirable condition.”
“Money isn’t the root of all evil, but is the root of indecision,” states Ofir Hillel, broker/owner of Orange Key Realty, “at least when you are paralyzed about buying a home. Thinking through the money issues helps you move forward. It may not be a good time for home purchase and that’s OK. It is far better for you to work through obstacles than to jump into the largest investment of your life without confidence. If you can work through your fears and get your finances in good shape, you’ll find buying a home doesn’t have to be paralyzing. In fact, it can be one of the most rewarding things you’ll ever do.”
Worried about cash flow? Large, unreasonable house payments will tarnish the joy of home ownership. Working to improve cash flow and not incurring any new debt will help put your mind at ease.
Orange Key Realty’s staff of sales and broker associates can be reached at either 863 Georges Road, Monmouth Junction (732-297-6969) serving Middlesex County, or 60 E. Main St., Freehold, (732- 863-6969) serving Monmouth County, or www.orangekeyrealty.com.