by Michael Mergell, Managing Broker RE/MAX Ability Plus-Fishers
Renting a home or apartment is commonplace. It's clear that some people simply just can't afford to buy their own home because of the down payment required. With FHA financing back in the mainstream, as little as 3.5% down payment can get you into your home!
My key mortgage partners have invested a lot of time learning the ropes of FHA financing and have taught me to understand that it represents an unprecedented opportunity for first time homebuyers RIGHT NOW. Most renters don't realize how easy the cost justification is for owning versus renting. Once I'm able to clear up the down payment challenge by introducing FHA financing, then the next hurdle is to show the $ justification for buying. I am pleased to say that I can confidently turn any renter into a homeowner by showing how much more money they are really spending by renting versus owning. Just let me know if you'd like me to take you through this.
The problem with renting is two-fold: you will never get back what you pay towards your rental property since you don't own it (and you're simply paying the landlord's mortgage) and secondly you will have restrictions imposed on you that you would not have if you owned your own home. The cost of buying a home isn't cheap. We all know and appreciate this fact. Depending on the location that you choose within the Indy area, the costs can vary. But the market is so soft right now that there are some amazing deals to be had.
When I work with first-time homebuyers, I always try to set a framework for homeownership. It's not uncommon that first-timers that come to me, have it in their heads that the house they buy has to be their ideal house...like the one they grew up in. A house they will live in for a zillion years. Here's the paradigm shift I try to instill: your first property will more than likely be deficient. Buy something you love that's imperfect. The key is to get in sooner than later so you can enjoy the tangible and intangible benefits of homeownership. Wait out the market cycle. Can you live in it for 3-5 years? Then buy it! In the meantime, save as much money as you can, build equity passively and proactively, and get lots of raises or bonuses at work. What I mean by building proactive equity refers to what I mentioned earlier-buy a place that's imperfect. This way, you have the opportunity to enhance the property's value by making improvements. Owning your own home is about benefiting from long term personal and financial satisfaction. Ownership means security and having the opportunity of creating the dream home the way you have always wanted it. Home ownership is also about benefitting from the freedom of having your own adult-person investment.
A key point of emphasis lies in being armed with the right kind of help to assist you in choosing which home is right for you. Talking to someone who can help you know what your options of owning are, without a doubt, is the right step to take. In the Indy area there is an abundance of houses and condos to choose from. Property prices during '08 and 09' have steadily dropped, and it's truly an ideal time to buy your dream home. Normally the best thing to do is to talk to a great Realtor who can give you a realistic idea of what's possible for you. Naturally, what's most important are your own needs and wants. Let's see if it's realistic for you to be a homeowner! Give me a call or drop me an email! The type of lifestyle you envision will help us determine if buying is a feasible option.
MICHAEL MERGELL (317) 645-8717 MICHAELMERGELL@REMAX.NET
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