The prices of home are quite high in NY. Your colleagues are planning to buy a home. You also want to settle down and desire to have a home of your own.
Amidst all the things: You don’t know how you are going to afford a property in NY. You are clueless where to find a decent yet affordable home. Hold up! Buying a home in NY is undoubtedly better than renting. But, you need a proper plan before making a final decision. Let’s take a look at some crucial points to understand why buying a property in NY is a better move than renting.
Why renting a house in NY is not a good idea?
People who advocate renting the home is better must be either the ones who have given their homes on rent or lack the knowledge of the real estate market in NY. We don’t say renting is a complete waste of money as it is cheaper than buying a home. But, if you look at the bigger picture – it is surely a bad idea. Reason? You are investing a lot of money which you won’t get back. Your hard-earned money is only going to fill your landlord’s pocket. In addition to this, your landlord will likely increase the rent every year. Therefore, renting a property in NY is not at all fruitful.
Key Benefits of Buying a Home
A sound real estate investment is all about taking calculated risks. So, here are the key benefits of buying a home in NY which you must take into consideration.
A Step Closer to American Dream of Homeownership
Even though you’re going to apply for a mortgage loan and will need to repay the loan amount for a few years down the line, it’s still the wise decision. You will be a proud homeowner once you are free from the mortgage loan. Therefore, every mortgage payment will get you a step closer to achieving the American dream of homeownership.
Relief in Tax
The tax benefit is possibly the most compelling reason for purchasing a property in NY. You will get benefited while filing for tax return as you are paying a mortgage loan. Therefore, you need not worry about anything.
Sense of Freedom
You don’t need to take any permission for keeping a pet of your choice or renovating your home. You can act as per your wish. You won’t get such kind of freedom in renting a home.
Stable Standard of Living
Having a home of your own gives an opportunity to lead a stable life. Children going to the same school and family spending years in the concordant neighborhood are definitely advantageous aspects of owning a home. On top of that, you know the nearby hospitals, banks, and safe routes for commutation as well.
Having a house of your own that too, in a place like NY is seriously the greatest achievement and an opportunity to become financially secure. With time, the value of your home will increase. For instance, today you brought home in $500,000, after a decade, its price might reach $900,000. So, if you think of selling your house after some time, you might get a good deal out of it.
Are You Ready to Buy a Home in NY?
Before you finally make your mind, answer these questions honestly.
1. Do You Have Emergency Fund Ready?
You never know what may happen tomorrow. Health issues and accidents spare no one. Therefore, it’s imperative for you to have some money in the emergency fund ready. Before, you plan to buy a home, at least have a decent saving which could be utilized during an emergency.
2. Will you be Able to Pay the Mortgage?
Nowadays, the major reason that’s driving a property to foreclosure is the failure of mortgage payment within the given time limit. So, if your monthly expenses are more and if you feel you might fall short of the money, then, it’s not the right time to invest in a real estate property. Take this step only when you are confident enough to manage everything.
3. Do You Want a Stable Life?
Majority of us dream of having a stable life. On the contrary, some people love adventures. Owning a home comes with certain responsibilities. Let’s say your job demands you to relocate every now and then. How would you take care of your home? Therefore, buy a home only when you are ready for a stable life.
4. Do You Know a Trustworthy Real Estate Agent?
Connecting to a trustworthy real estate agent can expound the entire procedure of buying a house. You don’t need to do manual research for finding a home. An experienced real estate agent in NYC can show you multiple numbers of properties in your desired location along with good amenities and chaste neighborhood. Another significant benefit of hiring a real estate agent is you won’t need to indulge in the legalities and paperwork. They will do everything on your behalf. Just read the documents and ensure the clauses and terms are correct.
Buying a home in NY is any day better than renting. At present, if you can’t afford to pay a mortgage loan, then the best piece of advice is to start saving and cut down additional expenses. Furthermore, get in touch with a reputed real estate company in NY like ‘Elite Properties’ for dependable home buying tips.
Are you planning to buy a home for the first time? Well, that’s undoubtedly a smart financial move. However, you may have to face certain challenges such as finding the right location or financing your purchase during the initial phase. So, before you take a step ahead in achieving your American dream of homeownership, you should gain some practical knowledge of investing in real estate. It will help you get a bird’s eye view of the current market situation, ensure you won’t end in smoke, and make your abode journey easier.
Considerations Before You Take the Plunge
Here are some basic yet important questions you need to answer before proceeding. They will positively help you navigate in the right direction.
What Kind of Property Will Meet Your Needs?
Buying a home for the first time can be a test of your patience and forbearance. Don’t get us wrong, but finding a home that meets your needs is actually not a cinch. Its better you start the journey by making a list of all the features/amenities you expect in your dream home. Let’s say your goal is to have a spacious home located in the central area of the NY with a small backyard. Then, you can either opt for brownstones or townhouses. If you want a cost-effective property with low maintenance, walk-up housing, which is the most common housing in New York, would serve your purpose. You have to figure out things according to your preferences and standard of living.
Do you qualify for the Mortgage You Expect?
During the home buying process, it’s crucial for you to know how much mortgage you qualify for. You may plan to buy a home with a net worth of $450,000. However, the lender may not provide more than $250,000. Why? The lender will analyze certain factors such as your total income, job security, and outstanding debts prior to assigning you the capital. They’ll directly say a no if your debt-to-income ratio depicts that you’ll not be able to afford the mortgage payments. So, it’s a wise step to calculate your credit before applying for the mortgage loan.
Do You Have a Trusted Source Who’ll Guide You throughout the Process?
As we mentioned earlier, buying a home can be a daunting task. A trusted source can prove to be a boon for a first-time house buyer because no matter how much groundwork you do, there will always be something where you’ll feel the need of seeking professional help. A real estate agent can provide you a number of options that match your expectations and are within your reach in terms of price range. In addition to that, they can also help you get a loan, complete the paperwork legalities, and streamline the process. Therefore, you must contact an experienced real estate agent in NY to make your transition a hassle-free one.
Home Buying Process
Here are the five significant steps that can demystify the entire home buying procedure.
Pick the Right Type of House
Contradictory to common mindset, there are a plethora of affordable real estate properties for sale in NYC. Make sure to do thorough research of such properties, online as well as by paying a personal visit. At first, check out the houses on the internet by exploring the property listing pages of top real estate companies in NY. This way, you’ll get the description of available houses including their high-quality images. Once you’re done, choose the top 10 or top 5 houses of your choice and contact the real estate agent for further details. Sort out the best property and move on to the next step for fulfilling your desire.
Explore Your Secure Financing Options
Assistance programs that offer low down payment and discounted interest rates for first-time buyers are available across different states of NY. Therefore, you must discuss regarding the different types of mortgages with your real estate agent. Investing your time in exploring the secure financial options may seem like a mentally draining process but, it will surely pay off in the long run.
Make an Offer
Many people get confused during the negotiation and end up frustrated. To avoid such situations, talk turkey to the real estate agent and decide a final price that you can offer for the property. Your real estate agency will then proceed and keep your proposal to the seller.
Consider Doing a Home Inspection
Once the seller agrees to your proposal, consider doing a home inspection by personally visiting the house. You can also hire a professional home inspector to save yourself from any kind of pitfalls. If you find something major that needs to be repaired, ask your seller to either do the needful or deduct the price from the final offer.
Close the Deal
You’ll need to sign a ton of legal papers while closing the deal. Carefully read the ‘legal jargon papers’ and if everything falls into place, go ahead and sign the agreement to seal the deal.
Mistakes to Avoid as First-Time Buyer
Buying a home for the first time is indeed very special. Even the slightest mistake while buying a home can result in failure. So verify the following things first and then take a decision.
Looking for Home First and Loan Afterwards
This is the most common mistake that first-time buyers do and regret later. As a first-time home buyer, you need to keep in mind that the property might fall into foreclosure or short sales if you fail to repay the loan within the specified period. So instead of daydreaming about the home, face the practical world by visiting a lender’s office first.
Not Paying Attention during Home Inspection
All that glitters is not gold. Therefore, paying undivided attention during the home inspection is necessary. Make sure you access everything including the drainage system, roofing, plumbing, and electrical wiring.
Don’t fall in the honey trap of fraud sellers who offer you unbelievable deals. The modus operandi of fraudsters is to take advantage of your ignorance. Stay cautious and understand all the clauses while you sign the agreement. The best way to avoid real estate frauds is to seek professional help. It will significantly minimize real estate related risks.
The Bottom Line
In a nutshell, the more informed you are beforehand, the less stressful you’ll feel during the decision-making process. Do follow these tips sincerely and we’re sure you’ll get your dream house in New York soon!