Making The Right Choice When It Comes To The Big Purchases In Your Life*
There are two big purchases we make in our lives, they can be classed as quite expensive purchases that you make, but they can also be seen as necessary. The car and the house. The house is to live in, the car is too be able to get around. Sure, there many be other big purchases in your life. Expensive jewelry, getting married, but when it comes to the everyday things in life, these two will be the expensive purchases you make. But how do you make the right choice? I wanted to share with you some of the things to consider when buying a house and buying a car.
Buying a car
Buying a car is something that many of us do in our lifetime, and probably do it consistently every three to five years. The issue with cars, unlike houses, is that they depreciate in value as time goes on. You can’t really invest in a car to increase its value, just like you can in your house. However, things change, you need a bigger car when your family grows, you need a practical vehicle for your job maybe, and so the purchases roll on through. The main thing I need to consider first is the trade in value of my car versus the cost of the new purchase. This is when I may need to take the time to understand what my budget is. Not many people buy a car using savings and cash anymore, there is often different financial arrangements you can ponder over. Make sure you are aware of what you can afford monthly, including insurance and running costs. So that when you do make the purchase, it is also an affordable one.
Buying a house
Buying a house is possibly the most expensive thing you will purchase in your lifetime. It isn’t as simple as finding the right house, writing a cheque and away you go. There are legal aspects of buying a house, deeds that need transferring, and of course, the mortgage. When buying a house you need to not only think about your budget, and what perhaps your salary will allow you to borrow against one. You also need to think about things such as how big it is, whether you can stay there a while and it can be comfortable with an expanding family. What area you are buying in? Whether It is close to schools, offers a decent commute to your workplace etc. It is also a good idea to ensure that you have the right legal aid, as well as someone who can advise you on the mortgages. A broker or contact with your bank is normally a good place to start. It can be a complicated process, but it can also be one of the best things you do. Buying a house gets you on the property ladder, and property valuations can increase in time. Especially if you invest in your property and make necessary renovations or home improvements. It can actually be one of the best financial decisions you make.
I hope that highlighting some of the things to think about when it comes to two of the big purchases you will make in your life, helps you in the future.