Just because Salt Lake’s real estate market is loaded with good deals now,
doesn’t mean home buying in Salt Lake is right for you now.
Things to consider:
1. Real Costs of Home Ownership in Salt Lake
Just because the mortgage payment is the same as your rent payment, doesn’t mean you can afford the home. Add property tax, homeowners insurance, and mortgage insurance, (if you’re putting less than 20%down). Also plan for costs of home maintenance and repairs…even if Dad gives you his old lawn mower, plan on buying fertilizer 4 times a year, snow shovel, snow blower, salt melt for the driveway in the winter, and the wife probably wants holiday lights and decor items. When the water heater needs to be replaced, that’s another $200. Utility costs will be more than apartment utilities. More square footage, more can lights, more bathrooms, and a yard to water. Remember brand new homes don’t come with window coverings, landscaping, fridge, or mailbox.
2. Family Expenses in Salt Lake
Are you planning on adding to your family? If you have a new baby, will you loose your wife’s income? Even preschools aren’t cheep these days. Are your kids old enough to need orthodontics, extra fees to participate in school sports and activities? Will you need a bigger or newer car? Do you want a freezer to keep extra food your growing family eats?
3. Unknown Future
Seriously consider your job security!
Always have an emergency fund to cover 3 mos. expenses MINIMUM!
Things ALWAYS happen.
Home ownership assumes you have a contingency plan in place…walking away from your mortgage isn’t one of them.