Should I Buy A Home If I'm Financially Ready But Not Mentally Ready?

“Should I Buy A Home If Im Financially Ready But Not Mentally Ready?” This is understandable when looking at home ownership process as “I buy here I stay here for 10 years or forever” Come on guys its 2020 we have to start thinking out of the box! You can buy a home and be as free to move around as if you were renting.

I don’t know where I want to live yet.    

   Simply because you don’t know the area you want to live in is not a good reason to postpone your wealth building! Buy a home in the area you want to explore and use the HOUSE HACKING method. This is where you buy a regular home or up to a fourplex and rent out the units or rooms you are not living in, the bes part is you can still qualify for an FHA home loan! (FHA = 3.5% down payment not including down payment assistance if you qualify for it) Lets take a look at some numbers in my area near Downtown Houston. The cheapest nice apartment / home will run you about $1,200 (2B/1b/1,000sqf) a month (Low end), app fee $50, Security deposit $1,200, and lets say you have a roommate so we cut that in half. If you decide to stay in the area for two years that means you just flushed $15,025 down the drain just in rent…… Now buying I found a home ten minutes from Downtown, seven minutes from Midtown, and completely remodeled for only $184,900. Don’t let the price tag scare you what’s important is your monthly, with 4% interest rate, 3.5% down payment, you’ll be looking at a monthly of 1,150! Now lets say we get you a roomette for that second room its only fair to compare apples to apples, that means your monthly will be $575. Oh yeah and with house hacking you don’t flush money down the drain it helps build your wealth, you gain $18,648 over two years. (that’s accounting for taxes, pmi, and regular insurance) Let’s say you don’t like the area after two years you can rent the home out, the mortgage will get paid, you will make some off the top, you can go to the next are and do the same! This leads into the next question “What if I don’t want to buy a home just yet?”  

What if I don’t want to buy a home just yet?    

   This is not a bad spot to be in maybe you aren’t ready to leave your parents home, maybe your waiting for the person you’ll spend the rest of your life with to choose a home with, or maybe you just don’t like thought of being tide down to something. Buy, Hold, & Lease this is the Grant Cardon strategy pretty much you lease what you buy and rent where you live. If you run your numbers right your mortgage will get paid, property management will handle everything, and you make some extra cash. For example one of my client’s bought a home for $89,000 mortgage was $750 and they leased that home out for $1,300. Best part he has yet to make a payment out of pocket! While you have your property leased you rent where you want and accumulate wealth with the equity the renter is making for you! This is just two examples of how to buy a home even if you are not mentally ready.

Jovani The Realtor 
Phone (call/text): 281.515.6828
Email: Jovani@lionsgaterealty.com

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