Why Buy A Home, Part 2

Get New Big Bear Real Estate Listings
Big Bear Information
Sell Your Big Bear Home - FAST!


Click Here To Get New Big Bear Real Estate Listings Now!

Home Buyers Real Estate Learning Center
Why Should I Buy A Home, Part 2:

- Accumulation of equity

Recommended Resources:

Why keep throwing your money away on rent? Why not build equity with that money, instead? Renting doesn't protect you against rising housing prices. Rental units are just as susceptible as homes to increases in taxes, insurance, utilities and other costs. Landlords will pass these increases along to tenants.

- Control of housing costs
You decide what to spend on your home, and when to spend it. Repairs, improvements, changes-everything is up to you, and only you. Unlike renters, homeowners who secure a fixed-rate loan can lock in their monthly housing costs, and make prudent investment plans knowing these expenses will not increase substantially.

- Opportunity to make improvements on the property

Recommended Resources:

No more futile daydreaming about that sundeck, or new bath, or exterior paint job. You can make any improvement on your own property that you wish, and you will be increasing your home's value in the meantime!

- Pride of ownership

Recommended Resources:

There's nothing like owning your own home. And don't think you have to wait to buy. You're never too young to own! Figures from the National Association of Realtors show that the average age of first-time buyers is 32 years. We can discuss the number and variety of financing options available.

The waiting game is a losing game. Don't put off buying a home thinking that prices will come down. They aren't likely to. For instance, from 1984 to 1994, the median price of existing homes increased from $89,400 to $145,400-a total increase of 61 percent.

- Example:
In 1992 a young California couple purchased a home for 126,000. They bought it with a FHA mortgage. Their total "out of pocket" cost was $6,000. That money covered their down payment, closing cost, taxes, insurance ­ everything. Ten years later they called for financing of their next home. When asked how much their new home would cost they said $374,000. Then they were asked how much financing they would need ­ they said $254,000. They were putting $124,000 down! Their down payment was the equity they received when they sold their home. Ten years after purchasing their home for $126,000, they sold it for $250,000! Their $6,000 investment had turned into $124,000 in 10 years. That's a 207% return per year on their $6,000.

We know it sounds too good to be true. When they were asked, "What did you do to the house?" They said nothing. They kept it up and they made their mortgage payments. You're also making mortgage payments right now. The difference is that you're making your landlord's mortgage payment. For those of you who have a 401K, you would agree that if you had a 20% return last year, you were happy. Consider that against a 207% return!

Why Should I Buy A Home, Part 1
Learning Center Home

Home | Big Bear Real Estate | Home Decorating Tips | Big Bear Links | Contact Us | Sell Big Bear Real Estate
Buyers Beware Report | Sellers Beware Report | Buyers Real Estate Tips Center | Sellers Real Estate Tips Center
Big Bear Mortgage | Real Estate Glossary | Sitemap | Privacy Policy

You have found the best source for Big Bear Real Estate
Ready to Buy or List? Contact Us Today!!

Web Site Planned, Designed, Marketed and Maintained by Quickbeam