buying a house

Should We Buy a House Next to a Cemetery? (Your Advice)

February 4, 2019 By Jeffrey Strain 38 Comments

When purchasing a house, there are a lot of considerations to take into account before making the purchase. This reader writes wondering if their dream house is ruined by a single (but major) fault.

We have been looking for a new house for about six months now. We finally found what I would consider to be our dream house in every aspect except for one problem. The house is located right next to a cemetery.
This does not bother me or my husband in the least bit, but I have heard from other people that it is considered an “incurable defect” that may make it very hard to sell in the future. Because we consider it to be our dream house, we have no thoughts of selling, but I also know that things change and we may have to sell years down the line if our circumstances change.
Do you think that having a cemetery next to the house will greatly reduce the appreciation value for future years? We know that it will have some impact on the price since the sellers are offering it at a lower price than comparable houses in the area. I think that we can even negotiate the price down more if we want. But if the house appreciates at a similar rate as other houses in the area and we give the discount that we receive, I don’t see how this could be a bad thing. Am I missing something in the equation?

Would you advise this couple to purchase their dream house even with it being next to a cemetery? Why or why not?

What is the Best Age to Buy a House?

September 20, 2017 By James Hendrickson Leave a Comment

Millennials have historically been the generation to change tradition. When it comes to home buying, that is no different. While many people may think your early-to-late 20s is the best age to buy a house, many millennials are waiting longer to settle down, have a family and buy a home. So, if that’s the case, when is the best time to purchase a home?

What is the Best Age to Buy a House?

There is no black-and-white answer to this question. Like many other personal finance topics, discovering the best age to buy a house may differ from person-to-person.

Young Home Buyers

When it comes to buying a home, you have to be at least 18 years old to sign the legal documents necessary. Other than that, there is no “best” age to buy a house.

Millennials were kind of slow coming into the home-buying market, compared to previous generations anyway. Many publications, such as Bloomberg, reported that millennials seemed to have no interest in buying homes. They wanted to rent.

This generation wasn’t stalling on buying their home for a bad reason though. Most millennials are waiting longer to get married and have a family and didn’t need the space yet. They were also facing a fairly tight existing-home market.

With the tight market and simply waiting until later in life to start a family, millennials have had more time to save. This has put them in a position where they are able to afford a hefty down payment and purchase some pretty fantastic starter homes.

Toll Brothers Inc., a luxury home builder, has reported that 23 percent of their current revenue stems from millennial buyers. Considering the median price of a home built by Toll is over $800,000, that’s not too bad! At the same time, many millennials are also purchasing homes that are more practical for their current needs (like tiny houses). So, if millennials are buying expensive homes and tiny houses, what is the best age to buy a house?

Things to Consider Before Buying a House

While many say your 20s is the best age to buy a house, there really is no “perfect” time unless your situation allows for the purchase of a home. If you’re considering buying a home in the near future, bear these things in mind:

Why do you want to buy? Before you consider buying a home, evaluate your reasoning behind wanting to buy. It is a huge investment and shouldn’t be taken lightly. If you’re buying a house just to have a house, you may want to think twice.
Do you know what you can afford? After you know why you want to buy, evaluate what you can afford. This will mostly be determined by how much you make and the area you live in. Check out this piece on how much you need to make to afford a $1 million home.
Will you stay there five years or more? If you’re not going to stay in the house for at least five years, don’t buy. Wait until you’ve settled down a little more and then purchase a home. After all, it is an investment and a 30-year investment for most. Not to mention, you likely won’t be able to make the money you need when reselling.
Do you have emergency savings? Being a homeowner means that you may come into some emergency repairs. Say the kitchen sink needs to be fixed, or the furnace needs to be replaced, having emergency savings can prevent you from falling into a financial rut.
Have you saved for a down payment? A huge part of deciding when the best time for buying a house is is whether or not you have the cash saved for a down payment. To avoid costly private mortgage insurance (PMI), you’ll need to put down around 20 percent.
Have you interviewed real estate agents? Once you’ve done the research, saved the cash and decided you’re ready to buy a home, it’s time to decide who will help you find your new place. You’ll want to find a real estate agent that you get along with and truly understands what you want for your new home. You can ask for references as well, to see how they’ve treated previous clients. After all, you will be paying them for their assistance in finding your new home.

No matter what, buying a house is a serious investment and should be treated as such. While there is no “best” age to buy a house, there is definitely a right time to do so.

How did you decide when you were ready to buy your first home?

Photo: Cash Crate

Why Should You Save?

January 8, 2016 By Amanda Stewart 1 Comment

There has always been importance placed on saving money, but why? If you have enough money to pay for what you need, then why do you need “excess” money to put aside? Well, everyone saves for different reasons, and if you are still looking for one, here are a few reasons you should be saving right now.

Vacation

What better reason to save than for a vacation? If you’ve wanted to go away for a while, go on a cruise or visit a city you’ve never been to, it takes some planning (and saving). You can have fun with your money, but you have to save to be able to do that.

Retirement

Even if you are young, it is never too early to start saving for retirement. No one wants to work forever, and most people aren’t able to work once they get older. Putting aside money so that you’re able to retire is important. This is often hard because you won’t see this money for many years, but it will be well worth it.

Emergency Fund

Everyone needs to have a savings account where they set aside money for emergencies. Whether it is an unexpected flat tire, car repair, medical bill or even unexpected charge on your bank account, you should always have some extra money set aside for emergencies. If you do not, many people use their credit cards if they do not have an emergency savings account, which leads to more debt, which is not ideal. Usually, you’ll want to have about $1,000 set aside in this account just in case. This will cover most car repairs and many other emergency situations. Once you use it, you need to work to save it back up.

Buying a House

Another reason to save is so that you can buy a house. Renting a home or an apartment is practically like throwing money out of the window. Sometimes, renting is all someone can afford or all they can get with their current situation, which is fine. However, if you are able to, you should save for a down payment on a home. Owning a home will pay off in the long run, so your saving efforts and the amount you spend on a home will be well worth it.

New Car

Just like a house, you can save to buy a new car, or save to pay off your car. If you currently have a car payment, your budget can become a lot more free if you set aside some money to pay off your car (or buy a car in full if you don’t have one yet). Usually, if you have the full amount to put on the car, the dealership will also strike you a deal, which is another great reason to save.

These five reasons to save are only a few. Everyone has their own reasons for saving, so it is important to discover what means the most to you. Whether it is having an emergency fund, buying a car or saving for retirement, savings is extremely important when it comes to how you are able to spend your time (and your money).