Buying Your Forever Home vs. Buying a Home That Fits You Now

 
 

You might think buying you forever home and buying a home that fits you now are two ways of saying the same thing.

After all, doesn’t everyone want to buy a home that will be their perfect long-term abode? Unfortunately, it’s not that simple. Thinking about buying your forever home means considering your future needs as well as your present circumstances. It’s an important distinction because not everyone is in a position to buy a house that they can stay in for decades to come. 

When you consider buying a home that fits you now, on the other hand, it means identifying what you need right now and how much you can afford to spend on rent or a mortgage in the short term while you continue saving for a down payment on your forever home.

What’s the Difference?
The key difference between buying your forever home and buying a home that fits you now is the timeline. You’re thinking about your future self and your future needs when you’re buying your forever home. When buying a home that fits you now, you’re thinking about your present circumstances. Forever home buyers often have a mortgage broker or real estate agent help them identify how much home they can afford to buy based on their current situation while keeping their future needs in mind. This might include looking at their income, expenses, debt and savings to see how much they can put towards a down payment and how much they can comfortably afford each month. If you’re buying a home that fits you now, you’re still thinking about your finances, but you’re also thinking about how long you’re likely to be in this home and how much mortgage you can afford while you save enough for a down payment on a home you can comfortably afford in the long term.

When Buying Your Forever Home Makes Sense
A few conditions must be met before buying a house that you plan to live in forever makes sense. Mostly, you need to be sure that buying a home is affordable in terms of the down payment and the monthly mortgage payments. You also need to be sure that the neighborhood you’re planning to buy in is safe and stable. Beyond that, you need to be sure that you’re ready to settle down and commit to one place for the long term. If you’re not sure you’re ready for that kind of commitment, buying a home that fits you now is better than buying you forever home.

When Buying a Home That Fits You Now Makes More Sense
There are several scenarios when buying a home that fits you now makes more sense than buying you forever home. First, if you’re not yet ready to settle down in one place, a home that fits you right now gives you flexibility. If you’re hoping to move around in your profession or change cities or even countries, you might be better off in a home that fits you now that you can sell easily when you’re ready to move on. If you don’t yet have enough saved for a down payment on a forever home, you may be better off buying a smaller home that fits you now and allows you to wait until you’re ready to buy yours forever home with a small down payment.

How to Decide if You Should Buy Your Forever Home or a Home That Fits You Now
The good news is that there are no wrong answers here. It all comes down to what you’re most comfortable with and what makes the most financial sense for you now. Start by asking yourself what you can afford and looking at homes for sale to see what your budget allows you to buy. If your forever home is still out of financial reach, buying a home that fits you now is better. You should also consider how firm your plans are. What if you have more or fewer kids than you’re planning? What if you change careers or your employer moves their offices to another city? What other things might impact your future and how would those things impact your ability to continue to live in your forever home?

The bottom line is that there’s no wrong answer when deciding between buying you a forever home and buying a home that fits you now. You just need to understand the differences between the two and which one is right for you. These are both great ways of approaching the home-buying process and ensuring that you’re prepared to commit to one place for the long term while still being financially responsible enough to make the most of your money.

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