Jan 9, 2021

First Time Home Buyers - Do It Now

Anyone who has never owned a home should buy one now.  Mortgage interest rates are so low that with tax deductions that come from making a mortgage payment, it might be cheaper in many markets to own a home than to rent.   Either way, homeownership is the beginning of the wealth ladder for most people.  Real Estate tends to appreciate over time.  And, with each payment, the homeowner is building equity in the home so it is like a forced savings account.  While it is true that real estate does have it cycles, so it is not totally risk free,  over the long haul, it should work out just fine. 

The good news is that first time homebuyers can often buy a home with just a 3% down payment, which should make it easier for many to make it happen.  In making any purchase always look to potential resale value.  Even if you don't have kids, buy in areas with good public schools.  You can check out school ratings on the Internet.  If you can afford a single family home, it will always have the best appreciation and resale value.  If not, starting with a condo in a good area can work too.  If you do buy a condo, it should be at least two bedrooms and two bathrooms with a garage for best resale value.  Buy as much house as you can afford comfortably.   Even if a little big for you now, you will grow into it.  Getting a home with a home office is almost mandatory today with so many people working from home.  

Think about the future.  If later on you can keep your first home as a rental investment property and still buy the next home, that would be ideal.  Having a renter make your mortgage payment, it is a great way to build wealth over time.  The time is right to become a homeowner.  Do it now.