The Benefits of Homeownership
Homeownership is one of the keys to the American dream. With the recent low interest rates, more and more US residents have become homeowners. By historical standards, current mortgage rates are very low. For many, it's a dream come true. Knowing that a house in this country appreciates about 4% to 5%, one can clearly see the advantages of homeownership. After the crash of the New Economy, many multimilionaires from the Bay Area of California, Southern and Northern California and many rich pockets of the country have been moving their assets into the housing market. For them, the housing market is a safer long-term investment.
Go anywhere in California and other states, for sure, you'll find a lot of building activities. Commercial building has taken off. Many agents are reporting that commercial buildings don't usually take a long time to sell. Many investors are all too happy to pour their money in this industry. The retail industry has hugely benefitted from the low interest rates in that business owners have been able to add to their existing buildings. Warehouses are springing all over the floor of the Central Valley of California.
What are the benefits of homeownership?
According to a study conducted by some educators, homeownership contributes to the intelligence, education and welfare of children. The gist of the study is that students who are raised in homes fare better than those raised in apartments and other similar living conditions. The premise of this finding is that homeownership contributes to stability which is a requirement for any kids to progress in their studies. Despite the headache of coming up with monthly mortgage payments, a homeowner feels better about these payments because they are going toward something he/she'll eventually own. In the end, the interest on the mortgage and the property taxes come in handy. Knowing how hard it is to save in this country where shopping has become sort of a therapeutic session and a sports activity, buying a house has been regarded as forced savings plan. It's a fact many people can't save either because they don't make much to be able to save or their buying habits get the best of them.
When buying a new home, what are some of the things to keep in mind? High Expectations in the countryside?
Whether you are going for duplex, triplex or multiplex, apartment, condo, co-op or any other derivative, keep in mind that the real estate agents will have a commission of about 6%. Keep in mind that closing costs will also take a chuck out of your new found treasure. Now if the seller wants to assume all or share in the closing costs, you can consider yourself lucky. A new phenomenon has surfaced. Many former homeowners who decided to cash in on the appreciation of their house by selling may never be able to afford the same type of house in the same neighborhood. This gives rise to the coinage of "Equity refugees." They sell high, relocate to a new area with low or affordable housing. They usually can afford a minimansion with the loot they brought with them. The Central Valley of California, considered the last Western frontier has seen many of these people with big city taste and no tolerance for farming activities and cattle raising in the neighborhood. Local city councils have been receiving many complaints from them. D'uh! You moved into dairy territory! What did you expect?
Here is what to remember when buying a new home.
In real estate, think location, location, location! The right location of your new home will contribute to its resale value. Think about the overall quality of life, the type of construction, amenities and neighborhood. It's important to know where the parks, shopping centers and recreation sites are located in relation to your residence.
Summarize: Decide where to live. Pick a real estate agent. Find a mortgage lender. Set your goals and requirements up. Hunt for the right property. Narrow your choices. Feel free to take the plunge. Make up your mind. Hang in there. Become a handyman or know a good one.