Most people realize that when you rent, you can move around more easily and you don’t have a big commitment to the area or apartment. Low input, because you don’t have to do repairs or improve the property, but you also get low output. Rarely can you paint or change what’s there, and for a creative person, that’s a huge drawback. Every month you pay rent, you are helping someone else build equity in their investment when you could be building your own equity.
Why not put your energies toward a property that’s not only yours to improve, but yours to reap the investment? Perhaps you don’t know how to adjust sprinklers or know how to hang drapes. There’s no better time to learn and since research on such topics is just a few clicks away, there is no mystery. When you purchase a new home, repairs or improvements will be at a minimum. Your fresh, new home will leave you inspired and secure in the knowledge that your investment will increase in value.
Your new home investment will bring your family stability, it will increase in value, and you’ll feel pride of ownership you may have never known before. An intangible benefit is how connected you’ll feel to the neighborhood and community.
Richard, a young adult in Salt Lake City, looked forward to home ownership. He postponed buying a home until he was secure in his job. This was the process he used to find a place to live:
- He googled it, got some ideas, and became overwhelmed with what he thought was an enormous process. Though there was plenty of online advice, he was unable to set a plan.
- He called up friends and family for advice and asked about re-sale value, and whether he should start with a realtor, and asked about homes vs condominiums.
- He decided to find a reputable mortgage lender and get pre-qualified. He now knew what price range to focus on.
- He knew he wanted to live near his workplace, so he started doing online research in the area where he worked to find a builder.
- His choices started expanding as he realized he could get a home 35 miles away from family or buy a condominium nearby his workplace – where would his priorities lead him?
- Were his familial ties such that he wanted to live close to family or was that a consideration? Some people may want to time the drive to see how big of an issue this may be.
- Did he want to do yard work or was he more interested in city living?
- MIT did a study that showed most people were willing to drive up to 45 minutes to work, but beyond that was a stretch.
- He drove around different properties and developments and started forming opinions on what he liked. He noticed the curb appeal of a number of properties as well as the locations. He took the time to walk through a few homes to see what amenities were in his price range. He spoke with a few builders to see what options were possible and began forming a priority list.
- Next, he wondered if he needed a real estate agent so he did some research, talked to friends and family, and decided he didn’t necessarily need one at that point.
- While the purchase price was a good way to compare the affordability of certain homes, getting down to the real payment amount became paramount. He went back to the mortgage lender with additional questions.
Narrowing down his search, things starting feeling real. He could soon see that this purchase was not only possible, but an exciting process.
The closer he got to finding a home for him to enjoy, the quicker he realized all the drawbacks of living in an apartment. Soon he would no longer have to wonder who’s making all the noise in the area and when would they be moving out. He would no longer have to wonder when the next rent increase would be. He could look forward to enjoying a home of his own and making that home reflect his personality. While purchasing a home might feel like a daunting process, it’s actually as doable as these steps; take the process one step at a time, one day at a time.