Buying a Columbia SC home is not always first in the minds of newlyweds, especially when you stop to think that total average spending on weddings has now exceeded $31,200!
One might ask, "Should you spend that much on a wedding, or use the same dollars for a down payment on a Columbia SC home?"
The website, The Knot, reports that the total average spending on weddings grew 5 percent to $31,213 in 2014. That may or may not be the result of a recovering economy and a testament to the still-strong sentimental value of that special day. But that hefty price tag, especially if the bride and groom are saddled with most expenses, raises questions about smart financial planning by young couples and their parents.
According to The Knot's survey of 16,000 U.S. brides and grooms married in 2014, the bride's parents contribute 43 percent, the bride and groom pay for 43 percent, and the groom's parents kick in 12 percent of the total wedding budget (others account for the remaining 2 percent).
Weddings Today Cost Nearly a Down Payment on a Columbia SC Home
The rapidly rising value of a Columbia SC home and tighter inventories have kept first-time homebuyers out of the market. With the average home price nationally at about $180,000, the 20 percent down-payment needed to qualify with just about any lender (assuming good credit scores) would be $36,000. That's about $5,000 more than the average price of a wedding noted by The Knot.
Financial planners have long cautioned young couples on overspending for an event only lasting a few hours — obviously, these numbers-crunchers are not too concerned about sentimental value. But the average wedding price does raise eyebrows.
Couples seem more focused on creating an amazing guest experience and reception details, including finding unique venues to reflect their personality, as opposed to looking for a Columbia SC home instead.
Of the nearly 16,000 U.S. brides and grooms who participated in the survey conducted by The Knot, 23 percent said they didn't have a budget to begin with, which explains why about 45 percent surveyed went over budget on their nuptials.
If wedding bells are in your future, consider how smart it is to spend close to the equivalent of a down payment on a Columbia SC home when planning your wedding, or whether you'd rather be coming back to a home you own when you return from the honeymoon.
Find more news articles as they relate to buying a Columbia SC home under our Columbia SC Home Buying Tips section of articles to your right under Columbia SC Real Estate Categories. Also find us on Facebook and follow us on Twitter for daily updates as well.
One of the questions we're asked quite often of people buying a Columbia SC home is, "How much salary do I need to make in order to qualify for a mortgage?"
On a national scale, a buyer who puts 20 percent down would need to earn a salary of $48,604 to afford the median-priced home in America. But that total varies a lot from city to city, and that holds true for anyone buying a Columbia SC home.
HSH.com estimates that you can buy the median home while making less in some areas than others, but some salaries require nearly $90,000 or more. But the most expensive city by far is San Francisco, where the site estimates you would need to make $142,448 to buy the median home in the area.
Qualifying Guidelines When Buying a Columbia SC Home
The site's calculations assume that a buyer spends 28 percent of gross monthly income on housing, including principal, interest, taxes and insurance, (in line with industry guidelines for standard "front-end" debt ratios) and makes a 20 percent down payment on a house.
To calculate the cost of buying the median-priced Columbia SC home, HSH.com combines its own average interest rate for 30-year, fixed-rate mortgages in the fourth quarter; the National Association of Realtors' data on median-home prices in the fourth quarter; average metropolitan property tax data from the Tax Foundation, a Washington-based think tank; and statewide average homeowner insurance premium costs from the Insurance Information Institute, an industry organization.
The data is, of course, an estimate — for one, property taxes and insurance costs will vary depending on the property — but it gives you a good idea of how housing costs varied around the country in the fourth quarter.
Another varying factor based on buying a Columbia SC home is the lower mortgage rates today compared to when rates climb higher. As interest rates rise, so must the salary of the average buyer of a Columbia SC home.
Find more news articles as they relate to buying a Columbia SC home under our Columbia SC Home Buying Tips section of articles, as well as Columbia SC Mortgage Info to your right under Columbia SC Real Estate Categories. Also find us on Facebook and follow us on Twitter for daily updates as well.
A recent survey of buyers buying a Columbia SC home indicated that a whopping 80% said there was at least one thing they regretted about the home.
The number one complaint: The home just isn't big enough, mortgage information site HSH.com found. Others complained about a lack of closet space or that the place didn't have enough bathrooms. Bad neighbors were also a problem, as was a substandard school system.
A lot of those issues could have been avoided. Of course, some factors, like bad neighbors, can't be anticipated. And some conditions change over time. Nearby property may be developed into a shopping mall or freeway, for instance.
Tips When Buying a Columbia SC Home
To keep you from buying a Columbia SC home you'll regret, follow these tips:
- Don't give in on your core requirements. If you know that having three bathrooms is important for your happiness but the Columbia SC home you're looking at only has two, keep shopping.
- Don't let yourself fall in love with a Columbia SC home that doesn't match your needs. Regret may not set in right away, but when it does, the fix, like adding a bathroom, might cost you a fortune.
- Don't cave in to a partner or spouse. If you believe you will be unhappy in your new Columbia SC home, don't let your wife of husband talk you into buying it. It will only cause resentment.
- Know your give-in points. Everyone house hunts with a wish list, but there are some items that can be compromised. Tiny kitchens might be a deal breaker if you are an avid cook but maybe you can live without a den.
- Don't lose your edge. Once a shopper makes the decision to buy a Columbia SC home, they sometimes overlook major issues. If the home inspector finds dry rot in the joists or the appraisal comes in lower than the sale price, stand your ground: either pull out of the deal or get the seller to lower the price to reflect the cost of the repairs. Consider the advantages of having your own buyer's agent to help you in the home search process.
- Do your research. These days, there's a ton of information available on the web that can help you in your search for a new Columbia SC home. We can help you get the stats you need on the quality of school systems, walkability and access to restaurants, as well as crime, that will help you assess whether a neighborhood or area is right for you.
You'll find many more tips on buying a Columbia SC home in our Columbia SC Homebuyer Tips section of articles in the Columbia SC Real Estate Categories to your right.
We also post other tips on buying a Columbia SC home on Twitter, and Facebook as well. Be sure to follow us there.
New research from the real estate website Trulia finds that it's cheaper to buy a Columbia SC home than it is to rent one. The advantage narrows considerably, however, when the home buyer uses a low-down-payment loan insured by the Federal Housing Administration.
The average cost of homeownership, including mortgage, insurance, taxes and maintenance, is 38 percent less than the cost of renting, according to the latest Trulia data. This is an even bigger gap than last year, when Trulia estimated homeownership was 35 percent cheaper.
Reasons Buying a Columbia SC Home Is Cheaper Than Renting
One reason for the improved conditions to buy a Columbia SC home is that the 30-year fixed interest rate for mortgages has been lower this year than last. And the other is that rents are rising faster than buying a Columbia SC home because of strong demand.
For many people, the down payment is still a barrier to buying a Columbia SC home. And for people who lost a home in foreclosure, it might still be a while before they can buy. Even though it's a good time to buy a Columbia SC home, many renters are stuck in place. 74 percent of renters have incomes below $50,000, compared with 41 percent of homeowners.
58 percent of renters said they would be unlikely or unable to come up with $2,000 within 30 days to cover an unexpected expense — never mind a down payment to buy a Columbia SC home to start with.
The reverse is true for a typical Federal Housing Administration loan with 3.5 percent down, which requires upfront and monthly mortgage insurance premiums, and builds equity much more slowly. In that case, the advantage dropped to 25 percent. And in some areas, the advantage was 10 percent or less.
Buying a home with an F.H.A. loan is still less expensive than renting almost everywhere if you plan to stay for at least seven years and can benefit from the mortgage interest tax deduction. But financing a purchase this way could be more costly than renting for more mobile buyers, particularly younger people.
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Thinking of buying a Columbia SC home? You may be better making the decision sooner rather than later!
If you qualify for a mortgage and choose not to buy now, you will be kicking yourself a year from now.
Thanks to very low inventory, Columbia SC home prices are projected to increase by 6.3 percent through April 2015, according to a recent study by Corelogic, a leading global property information, analytics, and data-enabled services provider.
Just how much could that increase cost you? More than you might think. On a $300,000 house today, the same house will cost you $318,000 a year from now.
4 Reasons Why Buying a Columbia SC Home Now is a Smart Move
#1 – Buying a Columbia SC home will only become more expensive because of low inventory and rising demand. With a shortage of housing and rental units available, Columbia SC housing prices and rents have increased, leading to affordability issues. The good news is that this supply and demand issue will solve itself once more housing units are built to accommodate the population growth and young families looking at buying a Columbia SC home. The bad news is that it could take a while, and prices will climb until then. So now might be a good time to buy, before prices peak.
#2 – Buying a Columbia SC home will certainly cost more, even if prices don't increase, because of the Fed planning to taper off bond-buying in October. The Fed is now buying $25 billion per month, down from $85 billion at the peak. The end of the program, which was aimed to keep interest rates low, is expected to result in higher interest rates, and any increase in interest rates could create even less favorable conditions for buyers.
Rising rates can have just as big an impact on affordability as does rising prices due to low housing inventory. When mortgage rates increase, borrowers experience greater difficulty qualifying when they are wanting to buy.
While you've already missed the bottom of the market with home prices, interest rates are still very low. Don't risk rates going up, which can ultimately cost you big on your home's price tag.
#3 – Buying a Columbia SC home will continue to become less affordable due to the current economy's flat wages. If home prices continue to increase, housing could in theory become less affordable if your take-home pay doesn't keep up with its growth. Can you afford to wait?
#4 – Buying a Columbia SC home now rather than later will have you beating others to the punch who procrastinate and wait til later to buy. The pent-up demand of younger professionals, who moved back in with their parents during the recession, is about to explode. And as these young people move out and form new households of their own, they will drive up housing demand.
While the competition helps the overall home values in the area, it also inflates prices to the point where buying Columbia SC homes is no longer affordable for a large percentage of potential home buyers. It's only expected to get worse as more and more young professionals feel ready to buy, so it's a smart move to buy now and avoid the potential price gouging altogether.
Stay abreast of all the news that affects buying a Columbia SC home right here at our website. More articles can be found in the Columbia SC Real Estate section, or the Columbia SC Real Estate News section, both to your right under Columbia SC Real Estate Categories.