The Five Year Rule for Buying a Candlewood Lake Danbury CT Home
The Five Year Rule for Buying a Candlewood Lake Danbury CT Home
One of the first questions a real estate agent will ask you if you plan to buy a Candlewood Lake home for sale is “how long do you expect to stay in or own the house?” In real estate, there is a certain 5-year rule for buying a house. We will explain the logic behind this in this article.
If you buy a Candlewood Lake home as a primary residence and have future plans of upgrading to a new home after 3 years, there’s a chance that you will lose money. When you buy a Candlewood Lake Danbury CT home for sale, the general rule is that you will own the home for at least 5 years, otherwise, you may take a financial hit.
The first hit will be on closing costs. When selling or buying a home, you need to consider closing costs and other expenses. Depending on your home’s location, the amounts vary, but buyers and sellers always pay something. This can amount to thousands of dollars. Limiting the number of times you have to pay closing costs is always a good idea.
The second hit is on your monthly mortgage payments. Mortgages are structures in a way that you pay the bulk of the interest during the first few years you own the house. It isn’t until you are about 5 years into paying your mortgage that you have actually paid off some of the principal to earn enough equity and make it a better deal than renting a home. As your principal goes down, the interest payments also goes down, so more of your money goes to paying the principal. That is why it makes more sense financially to wait 5 years before selling your home or moving.
If you plan on buying a Candlewood Lake home for sale and do not intend to stay in it for 5 years, there is also the option of renting it out. This is what most owners of Candlewood Lake homes do. They rent out their homes to tourist and those going on vacation.
If you are buying a Candlewood Lake home based on what you can afford based on what the bank says and you don’t plan on renting it out, then you might want to reconsider purchasing the home until you are ready to stay at least 5 years in it to avoid financial losses.
Aside from the 5-year rule, there are still many other factors to consider when buying a Candlewood Lake home or Lake Zoar real estate. Check out the article “8 Things to Look for When Buying Candlewood Lake Homes” on our website https://homesinconnecticutforsale.com
Call Deborah Laemmerhirt now at 203-994-4297 and let her assist you with everything you need to know about buying or selling Candlewood properties. Her years of experience as a preeminent real estate professional in Ridgefield, Redding, Wilton, New Fairfield, Brookfield, Bridgewater, Roxbury, Washington, Weston, Westport, Southbury, Kent, Sherman, Easton, and Bethel, CT, combined with her dedication to providing the finest service will make it easier for you to find your dream home in Connecticut.
