Skip to main content

Your First Home: Step 1-Decide To Buy


A person’s firsts are so iconic-your first car, your first kiss, and especially your first home. It is the most memorable and equally terrifying experience for buyers. You can ask any buyer, even if the process is the same for buying each house there is no time quite like the first time. One of the biggest reasons to purchase your first home is to start building your wealth.

What are some fears about buying your first home? I can’t afford to buy a home right now. I should wait until the real estate market gets better. I don’t have the money for the down payment. I can’t buy a home because my credit is not good. I can’t afford to buy my dream home. I should wait to buy a home until I get married. Buying a home seems way to complicated.

You can’t afford to not buy a home right now. If you don’t own-you rent right…and you will pay less owning a home monthly than renting with tax savings. There is never a wrong time to buy the right home. Real estate is a long term investment and trying to time the market in the short term will make you miss the long term investment. There are a wide variety of down payment options available for you. You could buy a home with as little down as 5% with some loans, its true. A less than perfect credit score won’t necessarily prevent you from buying a home. A good loan officer can work with poor credit history or no credit history, ask around. The best way to get closer to buying your dream home is to buy your first home. You work your way up to your dream home by building equity in your first home. There is no reason to wait. Regardless of you being married or unmarried in your future-being a home owner is a great decision. Buying a home is complicated, but that’s why you have help. Trust your real estate agent to help you through this process-that’s what they are there for.

So I mentioned building equity, do you know what I mean when I say that? That means that when you purchase a home for $150,000 dollars with a $15,000 down payment and a 30 year loan-there is $135,000 debt and $15,000 equity at the beginning. As you pay the home off, debt converts to equity and part of your net worth. After 30 years, you are worth $150,000 plus other assets you own. Another great thing about equity is your equity grows as your home appreciates in value. So if by the time you pay your loan off, your $150,000 home is worth $486,000-well your net worth just increased. Net worth becomes more important as you get older and have children and plans to distribute your wealth after your passing.

There are four principles in the buying process: The rules of real estate are always local, the best deals are usually win win, Price and value are not the same, and choose with your heart and your head. Doing real estate in Texas is a lot different than doing real estate in Orange County-don’t compare the two if you plan on buying in Orange County. Create an outcome that the sellers win as well as the buyers, the process of buying a home involves everyone on a major level. You may have to overpay for your home, but if it is the closest to perfect home for you-it has a lot more value and is worth the price. Your heart will love the home, your head will love the value-make sure both are happy.

This is step 1 of 8 in buying your first home-join us next week for step 2!

Orange, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn
Reference: Your First Home by Gary Keller
Labels:
Location: Orange, CA, USA

Comments

Post a Comment

Popular posts from this blog

The Fault in our iBuyers(iBrokers)

Today's topic will be about this developing trend of what are called "iBuyers", which are buyers that are more "convenient" to a seller, and who buy houses "as-is" with "all cash". In today's controversial environment of taking a position, this sounds all too familiar.  I would like to bullet point some of the problems of this iBuyer Trend: 1. iBuyers are really iBrokers The "buyers" really are intermediaries for larger venture capital companies, one of these companies, Opendoor, just closed on $300 million more to bring their total funding over $1 billion to buy single family homes for rent and for flip. It is estimated to spend more than $4 billion per year buying homes . Though the terms of the funding are not public, no one hands someone else $1 billion with no strings attached, they have their guidelines and what they can and can not do and are functionally no different than brokers.  2. Therefore, more i
Post a Comment
Read more

Real Estate Investments: Invest Up

I want to speak briefly to the masses today. Normally our audience is the Buyer and Seller, and yet it is easy enough for anyone to become both. It could even happen that you are a Buyer, Seller, and Investor at the same time! How can this be? Me, a normal person can be a Investor? Yes. Even more than that, as soon as you start your journey you start doing something greater than yourself, building generational wealth. Let's start at the very beginning, a very good place to start. This beginning looks like a house purchase. That would be because it is a house purchase. Assuming you are buying this house to rent out, you are now a Landlord and Investor. The first house is going to be the scariest, it gets easier from there. Let's assume you have rented out the house for a couple of years and you are looking to upgrade from a Single Family Residence to a Duplex. You would sell your Single Family Residence and 1031 the proceeds of the sale into the purchase of the duplex. Yo
Post a Comment
Read more

How I Learned to Stop Worrying and Love the Coronavirus

Greetings, Today I wanted to simply jot down some thoughts I had about this novel coronavirus (COVID-19) that the news cycle seems to love to talk about: - Will real estate values be affected? The answer is the same as every real estate question, it depends. I believe luxury will be impacted, I think more modest dwellings will not, and for a very simple reason, there is not more inventory and people have to live somewhere. - Is this our 1987 moment? In 1987 we had Black Monday, the biggest one day stock market drop in history, afterwards, real estate prices went up in a straight line for 18 months. Just like any good investor, when there is a shock to the system, you have to recalibrate, you either go to safety (or even relative safety, like houses versus paper ownership in a company), or you go to what has been undervalued. I suspect there is a good chance this is our 1987 moment for real estate. The 80's are dead, long live the 80's. - The drop in stock price
Post a Comment
Read more