Everybody makes mistakes, everybody has those days. Whether you’re searching for your first home or considering a downsize for retirement, it’s easy to misstep. According to an infographic from the California Association of REALTORS® with data from brankrate.com and RISMedia, these are the biggest mistakes per generation. And most importantly, here’s our advice on how to combat them.
20’s: Getting the Wrong Mortgage – Not only do 20 somethings need to consider all of the pros and cons of ARMs, they also need to understand the pros and cons of FHA loans. An FHA loan can be a great way to get into a home if you have less than stellar credit or need a low low downpayment, however, conventional loans can be more flexible than you think. Consider these facts when deciding between a conventional and FHA loan.
30’s: Not Thinking About the Future – Did you know that 93% of buyers, despite their age, are looking for a home with 2 baths? Whenever you purchase a home, always consider the resale value. Also, think about how much time you plan to stay in your home. Will you keep it as an investment property? Will you be trading up in 7 years? Will you need to save longer before trading up? Don’t forget to consider all of the options and where the future will be leading you.
40’s-50’s: Overestimating Your Budget – Sure, you might be able to afford the home, but can you afford the hit it could take to your lifestyle? If you’re a homebody and you plan to be spending all your time and money at home then that’s one thing. But if you want to have extra spending money for vacations, beer festivals, and family trips to the lake each summer, then you don’t want to blow your entire budget on a home that will cramp your lifestyle.
60’s and up: Falling in Love with That Vacation Home – Before purchasing a vacation home, test it out! Pick your ideal vacation destination, have an extended stay and take your time to decide. Southern California in and of itself is an amazing vacation spot, so never underestimate the value in keeping your home as a vacation rental. It doesn’t have to be a burden to hold onto when you have someone to help you manage it, like our property management team.
