Simple Rules For The Real Estate Market
Money Is A Pre-Requisite For Buying
In order to legitimately get into the game, a cash deposit is needed. “No-money-down purchases—no way! Very little down, because you can barely afford the house to begin with―no way! No money down can immediately put you into a negative-equity position—especially in a downward-moving market. The days of 100 percent financing are long gone.”
If You Cannot Afford It—Don’t Buy It
Everybody wants it all. Size, amenities, location, quality, ect. Tighter lending restrictions do not translate to the possibility of buying anything! Buying within your means with make your investment reasonable in the long run.
Low Credit Scores=Limits
Good credit opens doors, bad credit shuts them. Tighter lending/mortgage restrictions require that you develop your credit to me as healthy as possible.
Less Is More
Downsizing is in vogue. Population patterns are flipping from the increase of the baby boomer’s generation to smaller families looking for smaller houses. Larger homes are a drain on maintenance costs, temperature control, and many people no longer justify for paying for space they do not use.
Distress Properties are Becoming Competitive
The shock distressed properties had on the market has been adjusted for and evened out. In order for any non-distressed home to sell, prices had to stabilize around the new norm.
Whatever the Bank Will Lend You, Take Less
20% less preferably. “If they are offering you a $400,000 loan, say, “No, thanks.” Subtract 20 percent from that loan amount and bank on a $320,000 loan instead. Thus the house you should really be shopping for will need to be around $400,000. By taking 20 percent less of a loan than what the bank has to offer, you are safeguarding yourself and your financial security. You automatically create a built-in buffer for yourself in case of an unforeseen problem.”
What other tips do you think will help others navigate the real estate market?