First Time Home Buying
One thing is for sure, we all know that we need a roof over our head. In most people’s case they have to pay either rent or a mortgage payment for this roof, unless of course you have a rich family that can offer you reduced or free rent. The point is, we all have to pay for a roof over our heads. Real estate has always been considered a long-term investment. The question you need to ask yourself is, do I really want to pay rent for the rest of my life?
Generally, a home makes financial sense if you are going to live in it for at least three or four years. When you buy, you need to take into consideration the costs involved in buying and selling a home, from appraisal fees, taxes, legal fees and real estate commissions, to name a few.
When people lose money in the real estate market, it is usually because they did not own it long enough and sold too quickly. This usually means within the first 2 years of the purchase. Generally speaking, you cannot depend on making any real profit in real estate in the first 3 years. However, the longer you own your property, the more you will have paid down your mortgage (increasing equity), and combined with moderate market increases you can be sure to have a nice sum of equity when it comes time to sell.
Real estate has proven to be one of the most stable long-term investments there is. It is your guarantee of retirement security. Overall, it is far better to own your own home than rent. Not only for the pride of ownership but because it is your only long-term hedge against inflation. With rental rates increasing constantly, there is no guarantee you will be able to afford them as the years go by.
Bye for now!