Tim is a long time guest blogger here and we are always happy to have his market insight!
It’s a standard component of the American Dream for citizens of this country to someday own their own house. Those fortunate enough are able to capitalize on the actual acquisition of property, and it’s a massive investment that deserves an extremely calculated decision. Not only is buying real estate a very expensive choice, but it’s also one that comes with a mortgage often lasting 15-30 years. It’s a large-scale commitment that people need to assess on all levels before putting the pen to the paper.
The steps that people take to locate, view and purchase a house are vast and also varied by individual situation. What one particular family finds critical in their decision may be an afterthought for another family. While these differences between prospective home buyers are more than common, there is a similarity between many home buyers that needs attention: children. Believe it or not, children play a large role in real estate investment. If you are a prospective homeowner with children, there are some important factors to consider before signing off on a house. They’re listed below.
1. The age of children
It’s a fact that many people base real estate decisions on the size of their family. While it’s without a doubt the right decision to consider the number of people that will be living in a residence, it’s also important to consider the age of the children that will be residing in the property.
For instance, paying an extra $75,000 for a house with two extra bedrooms is realistic. Parents often want their children to have their own space to develop, and at the very least they strive for a room that children can share in the early years.
However, the age of children needs to be considered heavily when an investment of this scale is being made. If a family has two girls that are sophomores in high school, it may not be worth reaching deep into the bank account for the five bedroom house. Is it possible to settle on a four, or even three bedroom? With the girls close to becoming women and eventually moving out, it makes sense to seriously consider whether a larger house is necessary when the nest will most likely become empty on short order.
Highlight: It may be worth a second look if you’re planning on buying an over sized house, particularly if your children are nearing the age of moving out. Extra rooms inflate a listing price and they also fail to serve a legitimate purpose when uninhabited. It’s always nice to have extra space, but when this magnitude of an investment is being considered, it’s wise to look carefully at the age of any children involved.
2. Living situation
Buying real estate is more than purchasing a physical structure. Property investment is an all-encompassing decision that requires careful analysis of the prospective living situation, among other factors. When children are involved, any house that a parent or set of parents settles on will surely be influenced by the kids in their life.
Children can make a neighborhood or house the right decision, and contrastingly, the very wrong decision. For instance, parents with young children should focus very closely on the school district that their prospective lot will fall within. The school system they end up going through can change them for the rest of their life. Even if someone finds a dream property that falls within an average school district, it’s important to not compromise at all on a child’s education. It’s too important.
Additionally, it’s important to analyze any prospective property and make a decision as to whether it fosters an environment that caters to children. For instance, if a family has young children, does the house have a yard? Is it secure? Is it close to major roadways?
Highlight: When you’re deciding whether or not to push forward on a real estate transaction and you have children, make sure to consider the overall living situation and how the young people will influenced by it. Will the place you’re looking at provide a safe environment for them? How will your family dynamic operate in the new house? How long will your children even be there? Does the house cater to grown children? These are all things to consider.
Buying a house is a situation that deserves the respect of a large-scale investment, because it is one. Children are a critical factor to focus on throughout the process. They will be influenced by, and also influence, the future in the house and it’s important to acknowledge this early in the decision.
Tim Richmond writes about the mortgage industry, real estate, green building, personal finance and home ownership. He currently writes for the Native American mortgage specialists 1st Tribal Lending.