Considerations for Solopreneurs Looking to Buy a Home
Buying or building a home is an exciting process. And if you run a small business, a new home will allow you to have the home office you’ve always dreamed of creating. In fact, you may even be able to conduct your business there during regular hours provided you ask the right questions and comply with legal requirements. If you’re considering buying a home to accommodate your business, here’s what you need to know to get started.
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Considerations for Business People
Running a business out of your home is different than working remotely. Experts suggest looking up any zoning laws in your area that could apply to your business. Not all businesses are created equal; a writer or illustrator’s needs are different from those of a store owner or home-based psychiatrist. You’ll need to consider if your business will affect traffic, parking, and the well-being of your neighbors. There may be instances where you can file for an exemption or variance on your local zoning regulations, as long as you present supporting documents. This leads to the next consideration, and that’s making sure you’ve registered your business according to Florida’s formation requirements. Research how to form a Florida LLC so you know every step of the filing process.
Buying vs. Building a House
The Balance mentions that buying an already existing home is faster and cheaper in some circumstances. On average, it takes 44 days to close a deal if you buy a home; in contrast, building a home can take approximately 6.5 months. You’ll need to think about the utilities in the area where you want to build, the stability of the local ground, contractors, and permits. Consider your budget, time frame, and preferences as you make your choice. It’s essential that you work with a realtor early in the home-buying process. A talented and experienced realtor like Ami Walker has the market knowledge and local expertise necessary to find you a home for your home business needs.
Simplify Your Online Search
An online search for a new home won’t replace the need for a real estate agent, but it’s a great way to look at the options available to you and zero in on a neighborhood you think you’d like to live in. A multiple service listing (MLS) is probably the best way to search for a new house online. An MLS allows you to customize your search list. You can set up user alerts that let you know when a home goes on the market that fits the criteria you’re looking for, such as a certain price range, number of rooms, garage spaces, and other home features. The key is to know exactly what you want out of a home and to know how much home you can afford.
Set a Realistic Budget
What you can afford to pay for may be different from what is currently available in the market. That’s why it’s imperative to create a budget. Make a list of your monthly expenses, including rent, debts, car note, and other monthly obligations. Write down your earnings and that of your co-buyer or partner, if applicable. Include everything from your paycheck to other sources of income, such as an inheritance or alimony. Not only will this allow you to create a realistic budget, but lenders will ask you for this information prior to considering you for a loan. Experts suggest spending no more than 25 percent of your gross income on your new mortgage. Remember that owning or building a home also means you are now responsible for maintenance, occasional repairs, and property taxes. Additionally, obtaining a mortgage pre-approval from a lender can help you stand out as you look for a new home. If you plan on building, you may need to look into a construction loan. In addition to answering questions about your earnings and debts, you’ll also need to submit detailed plans for your new home. Down payment requirements may also be a bit higher than when you buy an already existing home. Construction loans may ask you to fork over 25 percent instead of the 20 percent expected of a mortgage loan. Buying or building a home may seem complicated when you’re first getting started. It’s worthwhile to spend some time sifting through numbers, figuring out what you want, and revising your business plan so you can make the right investment.
Author: Tina Martin of Ideaspired
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