Buyers often forget about home improvements and emergency repairs. (iStock)
Many first-time homebuyers are enthusiastic about the prospect of buying a home, but lack the hands-on experience to know what they may face when buying a home for the first time. Approximately 41% of first-time homebuyers are not very aware of the costs associated with homeownership, compared to 31% of buyers who have owned multiple homes. Angie’s Research found.
First-time homebuyers tend to underestimate the costs of maintaining and upgrading their home. Additionally, many don’t consider the financial burden of an unexpected home emergency.
Home improvement costs were the most surprising expense for survey respondents, with 43% of young homeowners aged 18-24 saying they were worried about the amount of money they had to spend in the first six months of buying a home.
Of the 12 different projects, just over 44% of first-time homebuyers spent money on painting the interior. Installing new appliances was the second most common, with 38% of respondents saying they had to replace appliances such as stoves or refrigerators.
Other projects most buyers face in the first year after purchasing a home include landscaping, installing smart home devices and renovating bathrooms.
Despite completing many home projects within the first year of purchase, 30% of homeowners report regretting that they wished they had completed more projects within the first six months of homeownership.
If you’re considering buying a home, consider visiting Credible to find the best mortgage rate for your financial situation.
Most homeowners would rather renovate their home than buy another one: survey
Many potential homebuyers believe renting will have a negative impact on their financial future.
While renting an apartment or house may be cheaper than buying in some parts of the country, many American adults believe continuing to rent will harm their financial future. Bank of America.
Nearly 70% of potential homebuyers feel renting isn’t a long-term investment in their future, and 72% are concerned that rising rent prices will negatively impact their long-term financial goals. Still, with home prices and interest rates remaining high, renting remains a viable option.
“The homebuying market is competitive, leaving renters unsure if now is the right time to buy,” said Matt Vernon, head of consumer lending at Bank of America Inc. “That said, our research continues to show that the overwhelming majority of potential homebuyers feel buying a home, now or in the future, will be the best decision for them in the long term.”
The urge to own real estate is why 37% of respondents who currently rent plan to buy a home in the future. The majority of potential buyers aspire to buy because they believe that owning a home provides them with emotional fulfillment. Additionally, 67% of buyers prefer the stability that comes with owning a home over renting.
When you’re ready to compare mortgage offers, consider using Credible, which makes it easy to compare interest rates from multiple lenders in just a few minutes.
Americans typically spend about 24% of their income on mortgage payments.
There are several states where you can still find homes for under $200,000.
The average home price in America is Approximately $420,000Those high prices, which were established during the pandemic-induced housing boom, have yet to come down in many parts of the country, but some cities still have homes that are nearly 50% below their current average prices.
Housing remains affordable in many Southern cities and suburbs. Realtor.com ReportFort Lauderdale, Florida has two suburbs where the average home price is under $200,000: Lauderdale Lakes, where the average home price is $175,000, and the neighboring suburb of Lauderhill, where the average home price is $149,000.
“Florida markets like Lauderdale Lakes are seeing a surge in affordable condos, making them a viable option for people looking to downsize without spending a fortune,” explained Hannah Jones, senior economic analyst at Realtor.com.
Other southern states also have more affordable housing options: In the southwest Georgia city of Albany, homes are on sale for 40% less than in Atlanta.
Outside the South, Detroit, Michigan, has the most listings under $200,000, with more than 1,500 on the market as of June. As the city undergoes redevelopment, many of these affordable homes are classified as properties in need of repair.
Cleveland, Ohio, also has a large selection of homes under $200,000, with over 500 for sale. Michigan’s capital, Lansing, is also one of the state’s top affordable cities, with over two-thirds of homes for sale under $200,000.
Sites like Credible allow you to browse multiple mortgage lenders and provide you with personalized interest rates without affecting your credit.
71% of Americans will wait for interest rates to fall before buying a home: Survey
Do you have a finance-related question but don’t know who to ask? Email a trusted money expert email address: Your question might be answered in Credible’s Money Expert column.
