While it may be the biggest investment, purchasing a home is still, at the end of the day, the best possible investment. So what's the hold-up, dear friend?
If you are saving up with the goal of getting your dream home within the next two to five years, the following ideas could help you buy your house sooner than you planned.
Don't buy from just any seller - look for a motivated seller. A motivated seller, simply put, wants to sell his or her house at the soonest possible time. It could be that the owner was unable to sell the house on his or her own or that, even though the house was listed through a real estate agent, it just didn't sell. You want to keep your expectations reasonable, as not too many homeowners - approximately 5 to 10 percent - can be qualified as motivated.
Look for somebody who does not need his/her money down. Most of the time, sellers are planning for their next home when selling their old one. You would want to focus your attention on sellers who have already bought a new home. Your shortlist may also have a few one-time rental properties, or a few vacant homes. The reason being, the people who are selling these homes would most probably have the luxury of waiting for their cash to come in.
A lease purchase is a nice tactic you can employ. This means renting the home for the first four to five years with a set monthly fee - do not buy it outright. This way, it's a win-win situation for both sides - the seller can take care of the property's costs while you, in the meantime, can live in the home, have time to spend for down payment and make the purchase when the time is right. To close up this tactic, ask the seller if you can buy the home at a lower rate or one equivalent to its present value. If the seller is not willing to go along with this, then look for someone who is more motivated to sell.
Our experts have a bonus idea you might want to try - see if the seller is willing to credit the purchase price for each month you are paying him/her your rent.
Why wait two to five years when you can buy your home right now - all these ideas can help you achieve this objective. And another great thing about integrating the above ideas of the game plan is the extra income involved - say, your home is worth $200,000 as of the present, you can make up to $40,000 more with a 10 percent appreciation rate!
If you are saving up with the goal of getting your dream home within the next two to five years, the following ideas could help you buy your house sooner than you planned.
Don't buy from just any seller - look for a motivated seller. A motivated seller, simply put, wants to sell his or her house at the soonest possible time. It could be that the owner was unable to sell the house on his or her own or that, even though the house was listed through a real estate agent, it just didn't sell. You want to keep your expectations reasonable, as not too many homeowners - approximately 5 to 10 percent - can be qualified as motivated.
Look for somebody who does not need his/her money down. Most of the time, sellers are planning for their next home when selling their old one. You would want to focus your attention on sellers who have already bought a new home. Your shortlist may also have a few one-time rental properties, or a few vacant homes. The reason being, the people who are selling these homes would most probably have the luxury of waiting for their cash to come in.
A lease purchase is a nice tactic you can employ. This means renting the home for the first four to five years with a set monthly fee - do not buy it outright. This way, it's a win-win situation for both sides - the seller can take care of the property's costs while you, in the meantime, can live in the home, have time to spend for down payment and make the purchase when the time is right. To close up this tactic, ask the seller if you can buy the home at a lower rate or one equivalent to its present value. If the seller is not willing to go along with this, then look for someone who is more motivated to sell.
Our experts have a bonus idea you might want to try - see if the seller is willing to credit the purchase price for each month you are paying him/her your rent.
Why wait two to five years when you can buy your home right now - all these ideas can help you achieve this objective. And another great thing about integrating the above ideas of the game plan is the extra income involved - say, your home is worth $200,000 as of the present, you can make up to $40,000 more with a 10 percent appreciation rate!
