If you are not quite financially ready for a home but you plan to have one within a few years, you may be interested in waiting overall before you invest in real estate. If you already know the area that you wish to purchase your home in, it can be a good idea to get the lot now, even before you are ready to sit your home down on the lot. Here are three reasons why you should purchase a home lot prior to your home and how it can help mentally prepare for a home.
Home buying is always imminent
Once you own a lot, it will be nearly impossible to stop thinking about the fact that you already have a lot prepared to sit a home. Prior to owning land or any sort of real estate, buying a home can seem like a dream. Once you have the land, you have a real, concrete area that you will be placing a home in. Buying a lot will be a constant reminder that you are in the process of creating a home for you and your family.
Constant reminder to save
If buying a home seems like a far off and misty distant dream, you may not be as disciplined about saving as you can. Without land, you may be fine with splurging or dipping into your home savings account for other things. With a plot of land ready and waiting, the lot will be a constant reminder that you need to save in order to move a home to your lot. This will make sure you stick to your savings plans and meet your monetary goals.
When you have to pay taxes on it, you want to use it
When you purchase a plot of land for your home, you will have to pay property taxes on the land. The land assessment is likely to be less than it would with a home on it; however, this can be just enough to light a fire under you about putting up your home. Paying land taxes each year will require you to think about your future financial and real estate plans regularly. Doing your research on how much you have to spend to put up a home and how much you can save out of your rental budget can be enough to make you take the final step into real estate.