You can find “experts” in real estate, but what and how much do they really know? These are the very same people who were present during the housing crash. Before you buy your first property, give these tips a read.
If you have children or plan on having them, you should look for a home with enough room for a family. Think about safety too. A swimming pool or stairs present a major risk for small children. Looking around at homes previously owned by families is a great way to find a family-friendly environment.
A house that needs a lot of improving and updates will be a little cheaper. You will save money on the purchase, and you can use that money to repair and upgrade the home as you wish. Renovations will give you equity with each step, while also allowing you to choose what your home will look like. Look for the potential a house has to offer, not just it’s flaws. Your dream house could be hiding beneath some dingy carpet and outdated wallpaper.
Consider the long term picture when you are shopping for a new home. While you might not have children yet, you may want some in the future. So you should still look at schools in the surrounding area to make sure that are satisfactory.
Be open to different possibilities. You may not be able to afford the perfect house in the perfect community, but you may be able to afford one or the other. Consider all of the options that are available and weigh them out in terms of your preferred location, the desired features of the house and how much you can pay.
Closing Costs
When you purchase any type of property, you need to have some extra funds set aside. Buyers typically figure out their closing costs by totaling the down payment, any points that they pay to the lender, and all real estate taxes after they are prorated. The closing costs can often include extra charges like improvement bonds, school taxes, and other local charges.
If you are looking at buying real estate as an investment opportunity, it is a good idea to look into properties that will require some work. You will have the benefit of having an immediate return on your investment as your property value will go up. In some cases, the increase in property value is greater than the amount of money that you invested into the work.
Again, trusting self-appointed real estate “experts” can lead you to financial ruin. How did the market collapse then when they supposedly knew all? Don’t blindly follow their advice. Rather, use these ideas on purchasing real estate.