When moving to a place with a higher cost of living (HCOL), earning power generally increases, and options for jobs might take a boost as well. These tips can help new homeowners make the transition.
1. Estimate Your New Purchasing Power
When living in an area with a lower cost of living, some might be surprised by how salaries differ in places like San Francisco or New York City. However, do not get lost in the digits. While a person's take-home pay may be a bit different after making the move to an area with a high cost of living, it's important to do research on what these numbers mean in this new area in a general sense.
2. Take Time to Understand the Local Market
Even home buying can be a bit different in areas with a higher cost of living. When looking at an area with explosive growth of home prices seemingly without check, you may realize there will be a market correction at some point. For example, the San Francisco Bay Area, arguably one of the most volatile real estate markets in the country, faces market correction about every 5-7 years. Before you start bidding, check into the history of the markets and neighborhoods being considered. Typically, buyers try to purchase in areas with the most stable rate of growth.
3. Look for Hidden Costs
- Income taxes
- Property taxes
- Public transportation or parking
There will likely be an adjustment period moving to any city with a different cost of living, so be open to making adjustments here and there.
Buying a home when housing prices are at a premium takes courage and smarts. With these tips, you can ease into your new life and prepare to buy a home with more information and a solid plan.
Ted Guarnero, REALTOR® is a full-time real estate agent with over 1000 homes sold and $400 million in sales. Working with Compass real estate offering professional and effective real estate services to help you succeed in the local real estate market. Visit www.seeChicagorealestate.com for information on downtown Chicago real estate and to get in touch with an expert in the Chicago real estate market. Before you hire your next Realtor call Ted Guarnero 855-See-Chicago, it's on the House !