How the pandemic changed house hunting

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Location has always been an important factor in buying a house. Can children walk to school? How is the school? Is there public transportation nearby? How far is it to the grocery store? Can I go to work soon?

For the last question, it may be meaningless for those who hope and can continue to work from home as the pandemic eases. Their commute is only a few steps away from the kitchen, or their table is in the kitchen, they can live anywhere in the country/region they want. This destroys the traditional concept of location.

In addition to location, size/style, house price, prepayment, interest rate and monthly repayment, there are now other factors to consider. Remote work triggered by the pandemic is one of them, but the global health crisis has also reversed trends in smaller regions. Home office space has now become a wish list of many buyers. Zillow reported in December 2020 that more than 48% of its listings are selling “home offices” or “Zoom rooms.”

Despite these factors, homeownership is still a stable investment because The money you spent on rent Instead, it reduces mortgages and increases true ownership of the selected property. Currently, mortgage interest rates are very low, but so is inventory, which means high prices in most regions.

Have Four financial issues You should answer before buying a house. However, there are other considerations. Please consider which of the following topics apply to you and how they affect your home buying decision.

Location, location, location

In most cases, buying a house requires paid work, and you (and possibly your spouse or partner) do too. Before the pandemic, another major issue for home buyers to consider was the location of new houses relative to their workplace or even neighbors.

However, during the pandemic, many people work from home (if they are lucky enough to stay at work). Twenty years ago, a good residence was nearby.

Ten years ago, remote work was considered a positive benefit of digital communication (adventurous stories, especially stories of technical professionals, bringing their work to the tropics), but in 2020, remote work will become necessary.

The meaning of location, location, location has been changed.

In May 2021, some companies welcome employees back to a safe office environment, while some companies provide employees with an opportunity. A mix of office and home situations. Others realize that they may exist and benefit from full-time staff, are closing their physical offices, or greatly reducing their office space.

Therefore, in terms of your own work situation, you may no longer need to be near the office. If you only go to the office twice a week, how close do you need to stay?

What is your current employment status? If you make a decision to buy a house based on your position related to your employment status, will you look forward to being in that position and working in the company for a long time? Will this affect your decision to buy a house?

How much space do you need?

Before the pandemic, your living space seemed to be enough. However, when it becomes necessary to create a viable working space in your house, the house suddenly becomes smaller. If you live with other people who work from home, you will need two work spaces. Your home has become a place for you to eat, sleep, and party, as well as an office, and in some cases, a children’s classroom.

Over the years, it has been developing towards smaller, more efficient and more environmentally friendly houses. They may not all be small houses, but smaller. The National Association of Home Builders (National Association of Home Builders) reported more interest in large houses in 2021-people want space.

So, will your home become your office? Will there be multiple people who need to work at home at the same time, and one of them is willing to use the kitchen, basement or garage as a temporary office?

If you need more space in your new home to resolve the remote employment situation, you need to strike a balance between space requirements and mortgage budgets. (Fortunate for buyers with low interest rates. It is unfortunate for buyers with low inventory levels but sellers who are intoxicated by higher prices.) This may require staying away from the urban environment and finding suburban houses area. The size that fits your budget.

But, then, this consideration becomes another consideration…

What about climate change?

For decades, it is advisable to be close to water, especially coastal areas, if not always possible. However, with climate change and rising water temperature, the lives of some people in coastal areas are too risky because of severe storms and flooding in these areas. Also considered more carefully the areas prone to wildfires.

These are extreme cases, but Recent survey An article published on Stanford.edu stated that 68% of millennials are interested in buying and living in areas where natural disasters are rare, and the oldest of them is over 40 this year.

Transportation is another issue. The farther you leave the city, the more likely you are to use a car. Today, many young people are embracing a climate-friendly urban lifestyle in which they use public transportation to get around instead of owning a car.

But this may not be an option, if other considerations (space, budget) force you to turn to “clumsy”.

If you want to work remotely without driving to the office, depending on the space you need, you may still be in the city.

Time is everything

With all of the above ideas, you have another thing to consider, and that is timing. When do you need to decide to buy a house?

Although today’s demand far exceeds supply, giving sellers a financial advantage over buyers, mortgage interest rates are still very low. If you need a mortgage to buy a house, you can buy a house now, if you want to meet the conditions. Buy mortgage interest rates online May be a wise choice.

The Fed’s Board of Directors said there would be No federal rate hike At least until 2022, but in the post-pandemic climate, the US economy is expected to continue to grow. Such growth may lead to interest rate hikes next year to prevent inflation. One thing seems certain: if you need to buy a house and cost is an issue, now is the time to do so.

Decide

Don’t you hate it when your parents’ advice is correct?

You need one List of pros and cons. In fact, you need multiple lists of pros and cons (location, space, cost, transportation). You need a priority list.

  • Do I need to buy a house now?
  • Do I need to live in a specific location?
  • Do I want to work at home, in the office or in a mixed job?
  • How much space do I/we need?
  • Which of the above factors takes precedence?

The decision to buy a house is one of the biggest decisions in your life. Due to the pandemic, climate issues and the possibility of remote work, it has become more complicated than ever.

Kent McDill is a senior reporter who has been focusing on personal finance topics since 2013. He is the writer of “The Penny Hoarder” (The Penny Hoarder).




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