FIRST TIME HOMEBUYERS—JUMP IN THE WATER’S GREAT!
A lot of young people are holding off buying a home right now. Most believe that they cannot make the move for one reason or another. Some believe that they cannot afford a home. The truth is that homes have rarely been this affordable. Yes, prices have risen, but, in the Twin Cities they are still below the highs of 2005 and 2006. But interest rates are at almost all-time lows which makes payments incredibly low. Most people don’t realize that interest rates have a more profound effect on your payment than does the price you pay for home. Increasing prices, so long as they are not increasing too quickly, is usually a good sign that they will continue to rise which really makes home buying a good investment. Unless you are going to live with your parents for the rest of your lives or choose to live in a tent next to the river, you are going to have some cost associated with where you live. The tax benefits of owning usually make it a much better investment for you than throwing money at a landlord so that he can pay off his mortgage. You should be paying off yours and in the process reduce your income taxes each and every year. Now every situation is different and a very few people may not benefit from owning. I recommend that you speak with a tax consultant on how this would affect your individual situation. Down payments are not a problem, either, as there are some programs which can get you into a house for a 0 down payment or very little. Annie and I love working with young first time buyers. It is great to help consul them on a process they have never been through and it keeps us young. Also, I have included on my web site, an article by Heather Sittig Jackson which was published this week in Inman News, a real estate industry newsletter entitled “21 tips for first time homebuyers.” This is a great article with a lot of good advice. My web site can be found atwww.mnhomesbydave.com . Thanks for reading.