If You Can't Afford a First Home
Many people think they can't afford to buy a first home. Although there are some who simply can't, many who can't image having enough money set aside to purchase a first home really do. They just need to take the time to figure out how to make it happen.
To purchase a first home takes some planning and perhaps settling for less than what you would ultimately like in the way of a home. Think about what you might be able to afford and what you need to do to get there. Say you would love to buy a home in the neighborhood you are renting in or close to your parents, but the homes are very expensive. Then it's time to think about looking in nearby neighborhoods or in areas where the prices of houses are not so high.
If a single-family dwelling is too expensive, look for a condominium or townhouse. They are usually less expensive, and when your circumstances change, allowing you to purchase a house, you can always rent the condo or townhouse or sell it. If this is your plan, before you purchase a condo or townhouse make sure you look at their specifications for renting or selling units.
You might also consider buying a four or six-family with a family member or friend. The two or four apartments that you own can be rented out and you and your family member or friend will have money coming in to help pay the mortgage or other unforeseen expenses. The potential for earning some pocket money is also there, because you are sharing expenses with your purchasing partner. In this situation, make sure you have a lawyer to will provide you with a partnership agreement that goes into detail about the sale and the partnership.
Lastly, you can look for a house that has been on the market for a while and needs a little fixing. You can move in and make repairs slowly investing little bits of money at a time, rather than a large sum into total renovations. Again, once you fix it up, you can sell it, make a profit and begin looking for a bigger, better property that you will now be able to afford. For more information go to www.bankrate.com for information on loans and lenders or myFICO.com for information on credit scores and to purchase a copy of your credit history and credit score.
ABOUT THE AUTHOR:
Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com
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