A. The following are the most important points to consider when deciding to purchase:
• You should be prepared to stay in your new home for at least 3-5 years. The reason is that when you buy, there will be some closing costs, and you want to give the investment enough time to cover them.
• Another thing is to make a point of getting to know the area/location of the prospective purchase. Spend some time walking around the community to be sure you will be happy living there for a while.
• Lastly, it’s important to understand all the financial responsibilities of owning vs. renting, your real estate broker can advise you on the specifics.
Bear in mind that you will need to invest at least 20 to 40 percent of the purchase price. You can borrow from your 401K if you have built up enough without paying any penalties.
Talk to a financial advisor or accountant about the benefits and risks of purchasing. For most people, buying is a great option. On average, your return on investment over several years of ownership will be anywhere from 5 to 10 percent per year.
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