New to the homebuying process?
I understand what it's like looking into purchasing a home for the very first time. The process itself is very overwhelming and intimating for starters like myself who had no knowledge whatsoever on the homebuying process. Although it was intially intimating, like anything in life, the more knowledgeable we become about a certain subject through research, the more comfortable and less stressful it can be!
Thus, this blog is dedicated to people interested in looking for their first home, but don't really know where to start. I am no expert in real estate, nor do I have any affiliations with anyone in the industry. But rather, I am just an average guy who wants to share my own personal experience when looking for my first home, and provide some practical tips along the way. At the very least, I hope this blog can act as a basic resource to help you understand the homebuying process when you start pursuing your dream home.
3 great reasons to buy a house
I think at some point in our lives we will ask ourselves the question, "Should I own a home?" Admittedly, it will be a very difficult question to answer as it really varies on an individual level and will depend on a bunch of factors, which I will discuss in subsequent posts. But having said that, there are also some great reasons why you should consider owning property! Let me share with you 3 of my favorite reasons on why you should buy a house:
A ton of property available
I am almost certain you are surrounded with news about the real estate bubble or housing market crash. While it is an unfortunate situation, it also opens a window of opportunity for potential first-home buyers. All different kinds of properties are now available to choose from, including single-family homes, condos, townhomes, etc. In addition, these properites are listed at much more appealing prices than years prior!
The advancement of technology, too, has allowed us to conveniently search and find potential homes to purchase over the web. Websites such as Trulia and Zillow are probably one of the more popular sites to check out. Another new website to look into is Hotpads, which has a unique layout that is pretty fun to use.
On top of that, all three websites have their own apps you can download onto your smartphone, so you can broswe property anytime and anywhere. And as you will see, there will be lots of property listings shown, including foreclosed housing. Though this requires more work from your end, foreclosed housing may be an option for first-time home buyers since they are generally priced much cheaper than its peers.
Many first-time homebuyers cannot afford a home all at once, so they have to obtain a loan called a mortgage. The mortgage's purpose is to pay the difference between the down payment you place on a home and the actual purchase price. And this amount is paid back monthly via mortgage payments depending on what kind of housing loan you obtain (ex: 30- v. 15-year loan, fixed-rate v. adjustable rate, etc.).
On top of repaying the principal, you will also have to pay interest. But fortunately, interest rates are at historically record lows, thus making it very ideal to purchase a home especially with a fixed-rate mortgage. By locking in your mortgage with a lower rate, you will surely save a lot more money in the long-run!
You will also save money by receiving tax deductions for being a first-time home owner. Homeowners can deduct mortgage interest and property taxes from your income taxes, which if you're like me, is wonderful news! Don't forget, too, that owning a home can be viewed as a long-term investment. Of course it really depends on how the market is as it has its ups and downs. However, when the market is good, the value of our homes increase, which may give you ideas to sell if you'd like to generate some profit from it.
Actual property that is yours
In my opinion, this is the most important reason to own a home: actually having property that is yours? Gone are those memories of your landlord/friend/creepy stranger/parents telling you what to do! You are the one fully in charge with decorating the house, making improvements, etc. And I firmly believe this freedom can not only offer us a greater sense of pride in our home, but also make us feel much more secure fiscally and emotionally. In addition, it's not too bad knowing that that monthly mortgage payment you will be paying will be paying off YOUR home rather than fall into the hands of your landlord.
Are you motivated yet?
While this post offers great reason to buy, please do not ignore your own personal circumstances and immediately rush into buying a home! Every situation is different, and the next posts will take a closer look to carefully assess whether owning a home is really a fit. Nonetheless, it is clearly evident that the market is full of property available at great pricing and record low interest rates. And if you're still interested in following your dream of owning a home, keep on following and let's make it happen together!
Any other great reasons to purchase a home that I left out? Feel free to comment below!