Friday, October 13, 2006
Are First Time Home Buyers being left out?
In a recent article on MSNBC.com entitled "First-time home buyers being left" out released by the associated press it points out how 80 percent think it is difficult despite the "cooling" market.
Let me be the first to say that I believe it has always been difficult to purchase one's first home. The polls quotes in the article quote how all over the country more than 50% of the people believe that it is more difficult for a first time home buyer than it was 5 years ago.
Nationwide there are first time home buyer programs available. In California, where we are located, there are programs that give buyers down payments, up to $12,500, because it is a high cost area along with interest rates of 5.75%. Rates that are below market, down payments that are silent, & the ability to negotiate make it a great time to purchase for first time home buyers.
The article mentions how people are spending in excess of 30% of their income on their housing. I agree that the old rule is one, that if possible, you should stick to. Often this is not possible. In fact I wouldn't own a home if I had stuck to that traditional bankers rule. The article makes no mention of what our parents, grandparents, & great grandparents did for their first homes, they sacrificed!
Back when the previous generation saved 20% for a down payment on their first homes there were only a few lending products to chose from. Buyers can now choose from thousands of different lending products. While I am certainly not saying buyers shouldn't save there are far more options today than ever before to help buyers with the rising costs of real estate.
Home ownership can be had but one may not have the car that their friends have, the vacations, or the location. These bloggers lived together with a buddy to buy their first home and were laughed at by many for the location, size, & the price. Years later it paid off.
First time home buyers need not worry about over paying. They should work with a buyer agent who is adept at negotiating & presenting his\her buyers case. In addition buyers need to understand as long as they stay in the home for more than 3 or 4 years it is going to be a great investment for them. Buyers also need to understand that their are sacrifices to home ownership. Sacrifices such as vacations, cars, TV's, and sometimes eating out. One has to know that it will pay off in great dividends.
First time home buyers can get closing costs financed and in some cases can own a home for less than the costs to change apartments. You just need to find the right buyer agent to work for you to assist you and work with them to help you. Real estate is an investment and these bloggers know that it has been one that has paid off for them, even if they were laughed at for where they first bought.
You be the judge of the real estate market!
The article that this blog was written on can be found at: www.msnbc.msn.com/id/15238121
Let me be the first to say that I believe it has always been difficult to purchase one's first home. The polls quotes in the article quote how all over the country more than 50% of the people believe that it is more difficult for a first time home buyer than it was 5 years ago.
Nationwide there are first time home buyer programs available. In California, where we are located, there are programs that give buyers down payments, up to $12,500, because it is a high cost area along with interest rates of 5.75%. Rates that are below market, down payments that are silent, & the ability to negotiate make it a great time to purchase for first time home buyers.
The article mentions how people are spending in excess of 30% of their income on their housing. I agree that the old rule is one, that if possible, you should stick to. Often this is not possible. In fact I wouldn't own a home if I had stuck to that traditional bankers rule. The article makes no mention of what our parents, grandparents, & great grandparents did for their first homes, they sacrificed!
Back when the previous generation saved 20% for a down payment on their first homes there were only a few lending products to chose from. Buyers can now choose from thousands of different lending products. While I am certainly not saying buyers shouldn't save there are far more options today than ever before to help buyers with the rising costs of real estate.
Home ownership can be had but one may not have the car that their friends have, the vacations, or the location. These bloggers lived together with a buddy to buy their first home and were laughed at by many for the location, size, & the price. Years later it paid off.
First time home buyers need not worry about over paying. They should work with a buyer agent who is adept at negotiating & presenting his\her buyers case. In addition buyers need to understand as long as they stay in the home for more than 3 or 4 years it is going to be a great investment for them. Buyers also need to understand that their are sacrifices to home ownership. Sacrifices such as vacations, cars, TV's, and sometimes eating out. One has to know that it will pay off in great dividends.
First time home buyers can get closing costs financed and in some cases can own a home for less than the costs to change apartments. You just need to find the right buyer agent to work for you to assist you and work with them to help you. Real estate is an investment and these bloggers know that it has been one that has paid off for them, even if they were laughed at for where they first bought.
You be the judge of the real estate market!
The article that this blog was written on can be found at: www.msnbc.msn.com/id/15238121
Labels: buyers market, buying a home, first home, loans, Real Estate Fall, real estate market, real estate prices
