Are you looking to buy a home on your own? If so, then you should know about the risks and benefits associated with solo home ownership. And regardless of what you have heard, it doesn’t have to be daunting going at it solo. Read on as we help you know if you’re ready to buy a house on your own.
Risks of Solo Home Ownership
Higher Associated Costs
When looking to buy a house solo, you should also consider the costs to maintain and manage the property. You’ll want to ensure you have enough money to cover the yearly property taxes, monthly utility bills, insurance, and a contingency budget for basic maintenance, upkeep, and emergency costs beyond the mortgage payments. Talk to a professional who can help you create a budget that is in line with home ownership expenses so you know exactly how much you can afford.
Resale Value
Many solo buyers in today’s market are purchasing condos or small townhomes. If your sole purpose of ownership is to sell the home within the next few years to make profit, be certain what you buy will have a decent resale value. The resale value on condominium and townhomes are usually much less than homes with land potential.
Full Responsibility
If you’re going to be the only one living in the home you’re also going to be the only one responsible for all the chores, cleaning, and maintenance. Make sure you can manage the home before you purchase. And if you aren’t ready to climb up on the roof to clean the gutters or handle the yard maintenance then consider looking at a condominium or townhouse with included maintenance.
Benefits of Solo Home Ownership
Rental Potential
Buying a home solo often allows for some rental potential. Fill up those spare bedrooms or basement with a tenant and you could be making money to pay off your entire monthly mortgage payments.
More Selection
As a solo home buyer, you don’t have to consider the same factors as families, such as best neigbourhoods for schools. You can live in areas that parents aren’t fighting for and where there is less competition and better pricing.
Only You Make the Decisions
There’s no other opinion to contend with except for your own when deciding what your dream home is, how much to spend, and how to decorate it. All the choices are completely your own.
Whatever your home ownership dreams and budget are, talk to your mortgage broker at VERICO The Financial Forum to explore your options. We can help you better prepare for all aspects of home ownership and connect you with better mortgage options.
