Instant gratification has become a cancer in our society, buying everything on a credit card, without regard to paying for it...again it truly is all about being responsible and setting priorities. So many times, I have witnessed new home buyers, overspending on furniture, big screen TV's, motor homes, boats, giving no thought at all to the everyday expenses of housing, utilities, and clothing. They elect to not make the house payment or the rent payment in lieu of having the latest, greatest cell phone or eating out every day for every meal or having the biggest cable channel package available. Where are the priorities? Financial responsibility is a must, always.
Those considering purchasing a home need to do their homework and make informed decisions. Renters indeed do not bear the burden of replacing a roof or a hot water tank, or the need to buy a lawnmower, but then they also do not have the potential tax benefits of home ownership nor the tax credit. If today's buyers make a sound decision, with the benefit of advice from a real estate professional with integrity, in purchasing a property, that is in good repair with newer mechanicals, roofs, etc, they should find themselves with equity rather than a security deposit refund in years to come.
What the 1st time buyer needs to realize is that they are not necessarily going to walk into perfection, that took Mom and Dad 20 years to achieve. If these buyers can look at a property with a discerning eye for "good bones" and overlook that it isn't painted in "realtor beige" I do believe that many, that may not have been able to afford a home of their own, can at this time, with the low interest rates, moderate downpayment, and the tax credit assistance available to them. Not like when I purchased my first home 25 years ago, with exemplary credit, a required downpayment of 20% and a 13.25% interest rate.
There been a glut of entry level inventory in the Toledo, Ohio market, that has slowly been brought to a more manageable level, but certainly there are still many good properties still available. Prices are very attractive with enticing interest rates and a federal tax credit, that puts cash back in the buyers pocket of up to $8000. How many will gamble this opportunity on it being extended once again? Is it not worth investing a little time, to research just what the real cost of purchasing a home would be?
It goes right back to being financially responsible, making a budget, considering items that are needed or simply wanted as luxury items. Investing $130 a month for cable channels you can't possibly watch and still making a trip to the video store because the programming isn't convenient to your schedule OR a lesser cable bill with the savings being applied to a mortgage payment? Only you can decide what is more important to you in the long run. The difference is building a future or building an unsurrmountable debt.
The current federal tax credit stimulus program does not come without a future price for all of us, but it is available so why not take advantage of it? The zero down loans of yesteryear, in my humble opinion, did more harm than good, as buyers had no "skin in the game" Hopefully this economy is teaching us that it is time to be a little smarter about how and where we spend our money.
Originally posted at www.conniejohns.com
Serving the Toledo, Ohio area and suburbs of Maumee, Perrysburg, Sylvania, Holland, Rossford, Northwood and Oregon.
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