There’s just something special about owning your own property.
When you own your own home, you have a sense of control. Nobody tells you what colors you can paint the walls, or whether it’s okay to put up shelves.
Or, perhaps you’re looking for an investment. Repairing older properties, or renting a well-maintained one, is a great way to generate some extra income.
Either way, there’s also the pride of ownership. New Hampshire features beautiful mountain vistas, paired with a lush, verdant landscape. Owning a slice of that for yourself is a great feeling.
That said, if you’ve never purchased a property before, it can be intimidating to get started.
But there’s no need to fear. Here’s everything you need to know before getting into the New Hampshire real estate market.
Why you should look into New Hampshire real estate
For folks who have always been renters, purchasing property can seem like more trouble than its worth.
Not only is there added responsibility, but there’s also a perceived lack of mobility.
Additionally, for folks looking for an investment, there is often a fear of another housing crash. While these may be legitimate concerns, given all of the benefits of property ownership, the benefits often greatly outweigh the costs.
Owning your own home
Most people who buy a home use it as a primary residence.
As we mentioned before, property ownership gives homeowners more control over where they live.
That said, one of the main arguments renters make against home ownership is a lack of flexibility. Many prospective homeowners fear being tied to a single location.
While there can be some truth to this, renting is not always as flexible as it may seem. Most renters are in a lease of at least one year. Moving before that lease is up could lead to a significant cost.
Not to mention, owning a home is still one of the most important ways to build wealth.
When you pay rent every month, that money goes into your landlord’s pocket. When you pay your mortgage, however, that money contributes to building equity in your home.
Additionally, owning a slice of New Hampshire real estate is a personal investment. If your home gains value, you can use the money earned from selling the home to purchase your next home.
By contrast, if the property you’re renting gains in value, it will simply increase the rent you have to pay.
Owning investment property
We’ve already mentioned that owning a home can be a personal investment. But you may also be interested in getting into New Hampshire real estate as a more aggressive investment.
There are two main ways to turn a residential property into an income-producing property.
Many people choose to rent out their properties. In addition to renting to long-term tenants, you can also choose to rent short-term, to vacationers. In New Hampshire, this is a particularly attractive option. You may be located close to attractions like Lake Winnipesaukee or any of New Hampshire’s ski resorts.
Another approach to creating income out of your property is “flipping” a home. With this strategy, investors buy a home that is in need of updates and repairs. After making those adjustments, they can sell (“flip”) the home at a higher price.
Finding the right property for you
If you’ve decided to buy a piece of New Hampshire real estate, either as a residence or an investment, your next step is choosing the perfect property.
Here are a few things to consider.
Set a budget
It’s crucial to have a budget in mind before you start looking for your New Hampshire real estate.
Your budget will determine what kind of houses are accessible to you. It will also dictate what areas you can look in.
There are a few factors to keep in mind when setting a budget. First, you’ll want to calculate what your monthly payment will be. When making this calculation, don’t forget to account for taxes, interest, and homeowner’s insurance.
Additionally, it’s also important to keep the length of the loan in mind.
For instance, let’s say you’re 40 years old, and buying a home with a 30-year mortgage.
This means you’ll be 70 years old when you finish paying off the loan. Before you commit to this payment, you’ll want to make sure you’re willing to work long enough to make those payments.
Also, keep in mind that, even if you think you can afford a certain payment, you’ll still need to be approved for the loan.
Your income, your credit score, and your outstanding debts will all impact the amount you’ll be approved for. Also, if you’re married, your spouse’s financial history will factor into the equation.
Determine what features you’re looking for
Whenever you decide to purchase a home, it’s all but inevitable that you’ll have to make compromises. Unless you have an unlimited budget and unlimited time to look for a home, chances all you won’t find everything you’re looking for.
This is why it’s important to make a list of what you want. You should then divide this list into features that are negotiable, and those that are non-negotiable. Knowing your needs will make deliberations easier.
Non-negotiable features usually have to do with the functionality of the home. For instance, perhaps you need a minimum amount of square feet or a certain number of bedrooms.
Negotiable features are the things you can do without or wait for. Perhaps you’d like a house with space for an office, but you don’t need one. Or, maybe you want a fenced-in yard, but you’re willing to wait a few years and put one in yourself.
Think about the location… Do you want to be close to work? To restaurants? Do you prefer a more urban, or more rural experience?
When you’re making your lists, be sure to keep your budget in mind. If you have a tight budget, you may need to be more flexible with your lists of needs.
Having these lists ready will help your real estate agent find you properties that you’ll love.
Find Your Dream Home
If you’re ready to dive into New Hampshire real estate, contact us. Our trained real estate professionals will work with you to finding the perfect property.