Has home prices rise in the Twin Cities and the surround areas in Minnesota we are back to a spot where a lot of first time home buyers are not able to find a lot of home options in that first home price range.
However, the market projects to have home prices rise slowly over the next 4-5 years, so if you buy now you should be able to have equity in the future to use for a move up home. This post I thought I would share below somes up what first time buyers can do!
I can remember when Paula and I started the search for our first home. We had champagne tastes with a beer pocket book. Our first home was a 108 year old three family. The floors were slanted so much that you had to have one leg shorter than the other. It was definitely not our dream home but it was our home. We lived there rent free and saved money. We stayed there for 3.5 years. It was sold for a nice profit. We then built a modest home on the water where we lived for the next 12 years.
I tell this story to first time home buyers who are disappointed in what they are qualified to buy. I explain that they need to buy their first home with the plan to sell it in 4-5 years and move on to bigger and better. Besides the price they need to keep in mind location, location, location. Why because location is so important when selling.
This plan has worked so well for so many first time buyers. Unless you are born with a silver spoon is your mouth you have to gradually work your way up to the McMansion. Your equity is usually enough for the down payment. Your incomes have increased. You are a more qualified and experienced buyer. You are living the American dream.
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