Tag Archive for: Home-Based Business

So you’re ready to buy your very first house! While becoming a homeowner is an exciting journey, there’s much to consider and prepare before you actually buy a house. Your life plans, career, finances and preferences in a home will all be factors that affect the kind of house you can buy as well as where you’ll want to live. To help you navigate all these factors, read on to learn about the three most crucial considerations when buying your first home.

Money Matters

Buying a house is no small endeavor, especially when it comes to money. You’ll want to start saving up as early as possible so that you can afford a down payment. However, after that, chances are you’ll need to get a mortgage to pay for this house over time. A common plan of payment is a 30-year fixed mortgage, which holds fixed principal and interest rates, meaning you’ll pay the same amount over the life of the loan (30 years). This is one method of paying off a mortgage, so do your research and discover what works best for you. There are other mortgage options available too such as FHA, VA, among others.

Additionally, you will want to take a close look at your finances, specifically credit and debt, as these factor into your mortgage eligibility and interest rates. When making moves to purchase a house, you’ll want to ensure that you’ve paid down as much debt as possible and that your credit score is the highest it can be. Avoid other large purchases and refrain from switching jobs during the home buying process as well.

Your Future is a Long-Term Game

Your future plans should be taken into account before you buy a house, as you’ll likely live in this house until your mortgage is paid off. Will you need to pay off any past loans, like car payments or student loans? If so, you may want to research or consult a financial planner on how to juggle paying for multiple long-term payments.

Do you want children in the future? Do you think you’ll help pay for your children’s college education? Although that may be years into the future, it’s crucial to consider everything you might possibly be paying for. Many financial aspects like paying off a mortgage or college tuition are a long-term game, so starting a college fund when you decide to have children is a great way to prepare financially for the future. It can be taxing to pay for several significant costs like college tuition and mortgage payments at the same time, as well as any other loans.

Needs Come Before Wants

Next, you’ll want to consider what you need and what you want in a house. Perhaps you need at least three bedrooms or even more if you plan on starting a family. You may need an open concept floor plan with ample room for seating, for example, if you like hosting. If you have a dog or plan on getting one, a backyard is a great asset to have. If you are self-employed, a house with enough room for a home office is necessary, so read our tips on launching a home-based business while moving to a new home.

You will also want to think about where you’ll want to reside. Depending on the state or city, houses will vary in cost. If you want a house in a large city, it’s going to cost more than a house in a very rural area. Explore and research the cost of living in different areas and what will work best for you. Remember the difference between needs and wants, as your very first house might not have everything you dreamt of. Luckily, you can always renovate or add on to your home in the future to make it your perfect home. Maybe flex space is an option for you?

 

Purchasing your first house is quite an accomplishment, but a lot of preparation and financial planning needs to be done beforehand. By considering these three factors, you set yourself up for a smooth homebuying process.

Becoming an entrepreneur is an exciting time, but it does require a lot of work. And if you find that you need to move at the same time to have a bigger workspace to suit your needs, it can be doubly challenging. It’s not an easy feat to start a home-based business while moving at the same time, but you can do it!

Here are eight tips on how you can accomplish both:

  • Make sure you select the right location. Make a list of everything you need close by for your personal life and then also for your business. That might be proximity to your shipping partners, an airport if you need to travel frequently, your suppliers or whatever else that might be. We have success with our clients who are relocating. We can help you find the perfect place!
  • Hire a professional moving company. Yes, you can do it all yourself and it will be cheaper, but it’ll take a lot of time and effort, which would be better spent on establishing your new business.
  • Plan ahead so that you don’t have too much workload when moving into your new place. The last thing you want is more stress piled onto everything else, so keep the days surrounding your move free of calls and deadlines as much as you can.
  • Get your business registered at your new home-office address. An LLC might be a good option for you, but make sure you check the filing requirements by state, as these can vary. This will allow you to work on your new venture without having to worry about any legal implications. You’ll also need the proper registration to claim tax deductions for expenses related to starting your business.
  • Sign up for continuing education. It’s easy to get bogged down in the day-to-day details of running your business. But if you keep investing in building your skills, it will help you make better business decisions and ensure long-term success. There are plenty of online degrees available in business or accounting that you can fit around your work schedule. 
  • Invest in state-of-the-art technology. Your old laptop might have been good enough for downloading music and email, but when you start a business, having the right tools will be a productivity game-changer. Invest in phones, screens, tablets, computers and any other technology you might need – keep it up-to-date.
  • Design a business plan to map out your long-term vision. By putting all of your ideas down on paper and going through the assumptions that back up all of your financials, you can troubleshoot potential problems before they arise. A business plan is also crucial if you need to go to investors or request a bank loan.
  • Stay on top of your accounting. Many entrepreneurs end up with stacks of crumpled invoices in a drawer and find themselves overwhelmed when tax season comes around. There are plenty of easy-to-use software options available today to set you off on the right foot from day one and make sure you don’t fall behind.

We hope that this post has provided you with some insights and tips on starting a small business from home while moving. You’re now ready to join the millions of entrepreneurs, who decided to pursue their dreams as well. Good luck with your new endeavours!

 

[This content is compliments of TidyHome. Image for this post – Unsplash]