When purchasing a new home, it is important to consider the location. Location will be a large part of your monthly mortgage costs and investment. Below are four important considerations when choosing the location of your new home.
Location Considerations
Urban or Suburban
Are amenities such as close proximity to stores and restaurants important or do you need more privacy? Included in your home investment are the schools, stores, restaurants, and events – or lack of – and it’s necessary to determine exactly what you want and need and what compromises you are able to make for these. A home in the city offers easy access to amenities but you may have to deal with potentially noisy streets while a home in the suburbs will be quiet but you will give up quick access to conveniences.
Property Taxes
Never forget the added costs of property taxes when considering your new home location. Property taxes are accessed by local and regional governments and can add a hefty sum to your monthly and yearly housing costs. How much are you willing and able to spend on your home each month? If your dream home is located in a city or region with very high property taxes that makes your payments outside of your comfort level, it no longer is your dream home.
Lifestyle Choices
Do you prefer to use public transportation or are you able to take on the cost of a personal vehicle? The financial and time costs of work commutes must be considered. Do you enjoy having your own outdoor space? The general rule is that the further out of the city reaches, the more you will be able to utilize your green thumb. Do you have or want children in the future? If children are a consideration, be sure to check out local schools.
Resale Value
How will your home location hold up? If you plan to be in your home for the short run, evaluate how the location investment will be doing in the future. That $200k home you purchased this year could earn you a lot if it’s in a prime location or you could lose money if the location you purchased in is not going to be a prime real estate area in the future.
