Housing Options ... Really?

Housing Options ... Really?
Is it really an option if you have no choice?

Buying, renting and living with your parents … those are your options if you don’t count the military or prison, I guess. Although some might consider living at home with parents a prison, but that is for another Blog post.

It seems like an increasingly popular family discussion these days are the housing options (if you are lucky enough to have family that  can talk about such things). Parents are scared about their children taking the responsibility of homeownership and a mortgage or buying the wrong propery at exactly the wrong price. Rentals are getting a little harder to find and maybe, just maybe renting grandma’s basement is not such a bad idea.

The problem really is that if you have to rent from family, it might work economically until you decide to have one too many friends over or until you clean out the fridge on a midnight run.

Actually, looking at the economics, and only the economics, buying is simply still the best deal around as long as you buy within your means (which means you buy what you can afford to pay back) and buy "right." How do you "buy right?"

The current housing market is full of sellers who have been trying to sell for a long time, hoping the market has turned upward for them only to find out that the offers are still few and far between—that is, if the price is not right from the asking. In others words, there are still properties that are listed for sale at exactly the right price right now AND THEY SELL QUICKLY so you have to be ready.

Looking for a bargain is not just about offering a low price to see if they take it. Today’s market has more to do with knowing a good deal when you see one. With all the internet tools available, there really is no excuse not to do your homework and know what you’re doing instead of deferring to a real estate agent or anyone else—although a real estate agnet will lkely help through the maze of buying in todays market.

Buying today will be the most significant life changing financial event for anyone who buys right and buys for the long term. Why?

We are in the midst of the greatest market correction in history, the lowest interest rates and the most inventory available to buy. It does not take a Harvard MBA or even a Community College education to know that buying right is buying right. The real question is who will help you? How do you find help and how can you be sure those who are helping you are giving you the best advice? Those are subjects for future blogs. But I must repeat ... We are in the midst of the greatest market correction in history and no one cany deny or spin that.

Renting? Oh right … you can rent which is the equivalent of paying someone else’s mortgage. I guess if you have no choice, you have no choice. But if you have to rent, then make sure you are also doing everything you possibly can to get your credit, finances and income in a position to help you buy as soon as possible. And if you must rent, rent fast and rent cheap because prices will be going up very soon and very quickly.

Remember, the rent you pay today is someone else’s mortgage payment and that payment includes interest AND principal. That means you are paying for someone else’s tax deduction and giving cash to someone else to help them build equity. Nothing wrong with renting if you have to, but do you have to? You could always put your money into the stock market, gold or buy bonds and feel more secure right?

Waiting to buy is a recipe for paying more than you have to, but if you can’t buy, you can’t buy. When it is your time to buy, ask me again and I will help you understand the market paradigm when it shifts. In the meantime, find something that makes sense to you, be realistic and buy within your means. For help on evaluating your options, feel free to reach out.

Visit our website at: http://203kServices.com and our real estate Blog "Today's Real Estate Matters:" http://203kExperts.com

Vito Simone
HUD 203k Consultant
410-602-1320

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