March 21st, 2013 4:10 PM by Amy Schiller-Goldstein
REAL TIME WITH AMY
If you haven’t purchased your first home, the time in now. First time homebuyers have so much going for them in today’s market, such as writing non contingent purchase offers, the ability to borrow money with a 3 in front of it, and the ability to put only 10% down and have Mortgage Insurance at such a low factors.
Who are these first time homebuyers in today’s market? Statistics show that single females ranging from 24-36 years of age are the biggest demographics of first time homebuyers. Stats also show that the average American will move 4 times throughout his or her life within a span of 11 miles. I bought my first home in 2002, a condo in the Kentlands, which I still own and rent to a fantastic couple who I hope to continue to love the unit as much as I do. As a woman I can compare finding the right home to finding the right wedding dress, black pants or perfect heels, you know when you know. I was very anti condo, for in 2002, I thought I was going to get the biggest bang for my buck in a new construction property. I put a deposit on a lot for a new construction townhome and within 24 hours my realtor had called me to tell me there was a condo I had to see. My Dad, who has been in real estate for a very long time, urged me to just look.. I walked in, and it was like magic; I knew I would call that place my home. I went through all the first time homebuyer jitters, even though I had gone through the process with multiple people on the lending side, when it’s you as the buyer, everything changes. I had my doubts and I had my fears, I wanted to withdraw my contract several times, even at closing writing the check was petrifying. It wasn’t until I was handed the keys to my new home that I felt like I had won the race, and from that day forward I haven’t looked back, and without regret I continued to purchase more properties. Homeownership is a privilege and a major responsibility, not just financially but emotionally as well. The money we talk about isn’t a hundred dollars, its hundreds of thousands of dollars, and most likely your largest financial investment. But the rewards are tremendous. My paycheck reflected my new home purchase in a positive way for my tax deductions had changed. The icing on the cake was when I started to see a nice tax refund every year due to the interest write off I got in which I didn’t have before. So now I am making more money per pay check and paying less in taxes. Win, Win! When I purchased my first home, even my second home the market was nowhere close to where we are now. Friends heed my advice, consider buying today, and take advantage of the low interest rates and the low home prices. It may scare the daylights out of you today and maybe even tomorrow, but we know one thing for sure, the long term benefits of home ownership will help to equate to long term wealth! Ask me to run numbers for you, or put you in touch with a Realtor who specializes in first time home buyers. Why pay rent and pay down someone else’s mortgage, when you can pay the same amount in a mortgage, gain equity ,and know your monthly payment is basically going to pay down a wonderful savings account for your future!
Have a fantastic weekend!