Most people buy a home, in part, because they’re looking to “put down roots”. But the truth is, the average American moves every 7 years.
Smart buyers never say “forever”. In fact, if you think you’ll live somewhere forever and you’re under 45 years old, think again.
The reason you don’t want to over-estimate how long you’re likely to live somewhere is because doing so will affect:
What kind of home to buy;
How much you should invest in your home once you do;
Which kind of mortgages you should consider.
So here’s 5 questions to ask yourself when you are trying to predict your own future, to help you think realistically about how long you’re likely to stay put – or not.
1. Is my family complete?
Why: Because if you aren’t finished growing your family (or aren’t sure one way or the other), you probably aren’t done moving, either. Between having enough space, jockeying for the best school districts, or even switching jobs to afford all the little monsters, you probably haven’t yet optimized your living situation to account for how kids (or spouses) will change your needs over time.
Why: Because if you aren’t finished growing your family (or aren’t sure one way or the other), you probably aren’t done moving, either. Between having enough space, jockeying for the best school districts, or even switching jobs to afford all the little monsters, you probably haven’t yet optimized your living situation to account for how kids (or spouses) will change your needs over time.
2. Do you get bored easily?Why: Your personality is actually the biggest predictor of how often you will move. Think about how restless or adventurous you tend to be. People who love to travel or try new things tend to also be more open to packing it all in and starting over. So ask yourself, as a general rule, does the idea of living in the same neighborhood (regardless of how nice it is) fills you with comfort or with dread? If it’s the latter, you’re more prone to be lured away for any variety of reasons.
3. When was the last recession?
Why: So, if we assume the last ten years were something of an (unfortunate) anomaly for homebuyers, in general a big(ish) recession happens every 10 years or so. But here’s the kicker: a suddenly shrinking or growing economy often has the same effect. At the end of a recession, when things are on the upswing, homebuyers’ new-found stability and wealth often prompts a move. And the reverse is true, too, as a recession begins. Either way, big economic change leads to lots of moving.
Why: So, if we assume the last ten years were something of an (unfortunate) anomaly for homebuyers, in general a big(ish) recession happens every 10 years or so. But here’s the kicker: a suddenly shrinking or growing economy often has the same effect. At the end of a recession, when things are on the upswing, homebuyers’ new-found stability and wealth often prompts a move. And the reverse is true, too, as a recession begins. Either way, big economic change leads to lots of moving.
4. Does your company have offices everywhere?
Why: If you work for the kind of company with offices all over the country – or even the world – and you happen to love working there, it’s not unreasonable that they’ll ask you to switch locations at some point. And if you are in “career growing mode”, which is usually between 30 – 45 years old, that’s even more likely to happen.
Why: If you work for the kind of company with offices all over the country – or even the world – and you happen to love working there, it’s not unreasonable that they’ll ask you to switch locations at some point. And if you are in “career growing mode”, which is usually between 30 – 45 years old, that’s even more likely to happen.
5. Do you expect to earn a lot more in the future?
Why: There are certain careers, like doctors, who start out earning relatively little but enter a phase of massive salary acceleration about ten years in or so. Many people find themselves in their late 30s or early 40s with three or four times the salary they had a few years earlier. If you are lucky enough to have that kind of a career, you’re also more likely to want to upgrade.
A re-post from Doorsteps.com
