Home Ownership Made Easy
|Jan 22, 2004 9:14 am
||re: First-time Buyer Fears
| Michael Keong
By human nature ,people do not like change.It makes them uncomfortable.More so when it comes to buying real estate....the biggest investment they will ever make in their lives. Homeownership completely changes the financial siuation where there are new (extra) payments....like property taxes , mortgage payments , light and heating bills and maintenance costs....as opposed to renting.You have a heavy financial commitment.
As you very astutely point out, they will become more comfortable over time as they get use to the routine of being a proud homeowner and making the regular mortgage payments.
Sacrifices need to be made...less eating out, curb your buying impulses and look for discount buying.All these extra savings will make a huge difference to your financial picture.
Today's potential buyers are no different except for one factor....the uncertainty of their employment.There is less security to their job today than say 15-20 years ago.
Having said that it is a great factor of concern but it should not stop anyone from homeownership for the simple reason that it is the best investment in your life over the long haul.
One important advice for those thinking of making the plunge of homeownership is that you must not go overboard and buy a house beyond your means.....I mean by stretching yourself too thin.Leave room for the rainy day.Do not jump into buying a house if you can comfortably buy a townhome and ungrade when you have saved more money.One other factor to keep in mind is not to have a herd mentality....when the market is sizzling hot.
> Devin Holloway wrote:
> Over the years, we've worked with a number of first-time buyers. What we've noticed is that most of the fears that buyers have, initially, dissipate after a few mortgage payments. As times change, so do people. I'm interested in what worries today's potential buyers about the responsibility of homeownership. For all of you experienced buyers and Realtors, what fears did you have to overcome prior to your first purchase? What advice would you give to people thinking about making the plunge?
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