Anyone who has never owned a home, should absolutely buy one today. 30 year fixed mortgage interest rates are so low at 3% or less that with a minimum down payment, the mortgage payment, taxes and insurance may be less, or about the same as paying rent. Owning a home is the beginning of getting on to the wealth ladder because over time, with inflation, homes tend to appreciate in value. However, it is a long term investment and should be seen that way.
When buying any property, location, location, location is the key to value. And remember, there are no bargains in real estate. If a home is selling for less than others in the neighborhood, it may involve various factors that diminish value. If the home is on a busy street or near high voltage power lines, stay away. Avoid properties in a flood zone. It is always better to buy a home above the grade of the street than below the grade of the street. The reality is that if you buy crap, you will own crap and crap rarely turns to gold. Always, think about resale value because some day, you will want to sell the home.
It is better to buy a single family home even if on a small lot than a condo unless a condo is all you can afford. A single family home generally will always appreciate more than a condo in the same area. Think ahead to avoid the need for a move in just a few years. If you are thinking of having a family, buy as big a house as you can afford. Curb appeal matters. Don't buy a White Elephant with an architectural style that is uncommon for the area.
Most important, order a general home inspection before buying any home even a new home. If there are major roofing, plumbing or electrical issues, you may want to pass. It can cost thousands of dollars to deal with these issues. At Paragon Home Resources, we can help you make good decisions in buying your first home. We have been there, done that many times for our customers. We can help insure that the decisions you make will stand the test of time.
