Tag Archives: Home Buying

The Pros And Cons Of Condos Townhomes And Single-Family Residences

Individuals that decide to invest in real estate are making a wise decision. There are always ways to find excellent deals on real estate that is currently available. You can speak with a local realtor to find out what is currently being offered, and if you have the credit or cash, you can start buying real estate right away. However, you need to consider the type of real estate that you invest in before you make this type of investment. There are three types of real estate that you should consider right now. That includes condos, townhomes, and single-family homes that are for sale. Here is a brief overview of why you should purchase any of these, and some drawbacks that might be associated with each one.

Pros And Cons Of Condos

Condominiums have always been very popular for an assortment of reasons. Some of the positive aspects include low maintenance, upscale communities, and prices that tend to be affordable. The main drawback is that condominiums place you in proximity to all of your neighbors, similar to an apartment. These are much larger places to live, but you are limited regarding your living space, a problem for those that would like to have a backyard.

Pros And Cons Of Townhomes

These are very similar to a condominium in that you are in proximity to other people, typically separated by a single wall. However, unlike condominiums, these can be multi-story homes. These are perfect for people that would prefer having a lot more space, and also the ability to live in a low maintenance community. You will likely pay for this privilege, and if you do need quite a bit of space for you and your family, these are very good investment.

Pros And Cons Of Single-Family Homes

For those that would prefer to have a home on a lot, one that is not directly connected to anyone, a single-family home is probably your best investment option. Whether you are purchasing one to live in, or if you are going to be investing in properties that you can rent out, you really can’t go wrong with low prices on single-family homes. The one drawback associated with this type of investment is that it can be very expensive. It just depends on the size of the home and the lot that it is on. Other factors will include location, the age of the home, and the overall square footage. These are designed for people that would like to purchase an investment property that they can rent out to families, or something that they can hold onto for decades which can appreciate in value very quickly.

Which One Is The Best Option?

The best option depends on your situation. For example, if you are looking for investment properties, any of them can be a good choice. If you have comps on houses, condos, and townhouses in the area, if you can find one that is a great deal, it’s something that you should purchase. If you are looking for low maintenance investment, condominiums and townhouses are the best. It’s also possible that you could get into this type of investment for a much lower price point than an actual home.

All of these options are excellent for people that are looking at investment properties. The only drawbacks tend to be based upon location, the square footage, and the cost of upkeep. You may want to consider investing in all three types of real estate just to see which one works out the best. There are always going to be people that would like to rent a place to live. For a long-term investment, all of them will appreciate in value, especially in areas where homes are quite expensive. These pros and cons of investing in condos, townhomes and single-family homes should give you a better idea of where you should invest your money.

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The Biggest Mistakes First Time Home Buyers Make

Are you thinking about buying your first home? Well, the entire process might be exciting and scary at the same time. You are simply looking for a home at the right price that meets all your preferences, and no matter how long it takes, you might be lucky enough to find one. However, when you are doing it, you should beware of the following mistakes.

1. No Idea Of Your Budget
Before buying a home, you need to create a budget. Here you should list your expenses besides rent that you have to deal with every month. Now, with that figure in mind, you can look at homes within the right price range without overstretching yourself to meet your monthly expenses. If you find that most of the homes you are looking it are not within your budget, you can work towards reducing your monthly expenses or look for houses at a lower budget.

2. Not Doing Mortgage Qualification
The amount you can afford for your new home and what the bank might be willing to lend you can be varying considerably. For instance, if you have an unstable income or very poor credit rating, the bank might be unwilling to lend you a lot of money. Therefore, before placing an offer on any home, you need to get a pre-approval at the bank. It would be time-wasting to make an offer for a home only to find that the bank can’t offer you what you need and the only way to get financing is through a mortgage with very unfavorable rates.

3. Failure To Consider Additional Expenses
Besides your monthly payment on the house, there are some additional expenses that you should be aware of. Besides being a homeowner, you are susceptible to property taxes, insurance payments, repairs and also maintenance costs. Therefore, you should account for all these additional expenses to make sure your property value doesn’t go down if you plan to sell your home later. If you concentrate only on the purchasing price, you might stretch your budget considerably when you have to pay for these monthly payments after the first month of being a home owner.

4. Being Very Picky When Choosing A House
Everyone has a picture of the home they hope to buy. Therefore, when you are looking for a dream home, don’t be too picky. Of course, some things might not be up to your expectations, but there is always room to compromise. If you have limited funds to get exactly what you are looking for, you should be flexible enough to find something that serves the same purpose regardless of whether or not it is on your wish-list.

A rule of thumb is that you should not compromise on the important things. If you are planning to have kids in the future, don’t settle for a smaller house just because your budget will not allow it. You can always continue searching until you find a home that meets exactly what you are looking for. Therefore, if you have to compromise, make sure that it is for smaller things that can always be added later.

5. Failure To Inspect
Just like you would when buying a new car, you need to inspect the house you are looking to purchase to make sure it is in a good working condition. Certainly, you don’t want to close to deal only to find out that the house has mold or termite infestation that might cost you a lot of money. Therefore, hiring a professional inspector to look through everything in the house to make sure it is as good as promised.

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