Chapter 2: Ready To Buy Property?
Before proceeding, here's some must-have information for first-time homebuyers.
We all aim for the American dream. Owning a home means you don't have to pay monthly rent for your place; you own it. You can now choose what you want to do with your house. Even better, when you sell your home, you can recoup the amount that you paid for it. Hopefully, you will earn a profit as well.
There are a host of responsibilities and disadvantages that go hand in hand with home ownership. Without a doubt, the purchase of your home will be one of the biggest financial investments you will ever make. So, before you proceed with a home purchase, take stock and figure out whether owning a home will work with your lifestyle and your finances.
Buying a home is only worth the time and effort if you plan on owning it for four years or more. That is, unless the real estate market is roaring. This is because the transaction fees for buying and selling a home mean you will most likely lose out. Furthermore, any profit that you do happen to make will be subject to capital gains taxes if you had the house for less than two years.
Before buying, think about whether you want to stay in the house that long. Remember to think about things like job moves and going to college as these are things that can cause a changes in location and finances.
Other things to think about are the responsibilities of homeownership. Are you willing to pay for plumbing when pipes go bad or would you rather not deal with it and have a landlord take care of maintenance and repairs?
The financial considerations are the cost of owning a home as opposed to renting. To calculate a comparison, if you pay less than 35% in rent than your monthly mortgage payments (including property taxes and homeowner's fees) then you would be better off continuing to rent. REALTORS® can help you calculate these figures accurately and advise you on this subject matter.
If you have looked over all of the points above and buying a home still looks like a positive, you can take the next step: getting money.
- Find Foreclosed Homes at 50% Off
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- Need a mortgage? Choose from up to 4 different offers.
Chapter 3: Getting Cash For Your House
