Renting used to be a cost-effective approach, as opposed to owning a home. Yet, in today’s economy, many people struggle to afford the cost of rent. Today, there are more single-parent homes than ever before. In turn, this results in only one income available for food, utilities, clothing, and rent. Has the time come when it is cheaper to purchase a home than rent?
Renting is often touted as an affordable alternative to homeownership, but recent studies have revealed that renters are feeling the pressure of rising rents just as much as buyers are struggling to find reasonably priced homes. According to the National Low Income Housing Coalition’s latest study, “Out of Reach: The High Cost of Housing,” the average full-time worker must make $21.21 per hour to afford a basic, two-bedroom apartment and $17.14 per hour to afford a one bedroom. Continue reading…
Once you have made the decision to purchase a home, there are several more decisions to follow. Are you interested in quickly grabbing a short sale home? A short sale home is one in which the owner can no longer afford to make payments and the bank has agreed to let it go for less than the value of the home. Contact a real estate agent that specialize in short sales, to help you find a home up for quick sale.
Another choice, to keep costs low, is to decide if a “fixer-upper” is an option you are able to entertain. When considering a home that will need repairs, it is always best to consult with a professional inspector, check structural issues, and decide which projects can be done on your own and what can be sub-contracted. You would be surprised at all of the information available on YouTube to help a new homeowner complete a daunting repair.
How to Determine the True Cost of a Fixer-Upper
One of the problems with all those reality TV shows is that they don’t go into much detail about costs. They focus on the drama: discovering a hidden problem, finding a creative solution, and finally unveiling a beautiful, transformed space.
But in real life, numbers matter. Before you even start fixing walls or picking paint colors, you need to know whether you can really afford to buy this house and do the repairs on it. Working out just how much those repairs will cost is a complex process with several steps – and each one can have a big impact on the final sum.
Above is an excerpt from Amy Livingston on How to Buy a Fixer-Upper House… In the full article, she explains in detail, the steps that a potential homeowner must take to determine if do-it-yourself repairs are an option.
There are many advantages to fixing up an older, worn out home. One of the biggest advantages is profit. According to research done by James Limbach for Consumer Affairs, home sales appear to be on the rise. He provides us with the following information:
“Mortgage rates in April dipped back to their lowest level since November of last year, spurring home-buying activity,” said CoreLogic Chief Economist Dr. Frank Nothaft. “In some metro areas, there has been a bidding frenzy as multiple contracts are placed on a single home. This has led home-price growth to outpace rent gains.”
Buying a home, is the biggest purchase you will make in your lifetime. Follow the tips in this article and the list below to make the best decision for your future.