'I Don’t Have Enough for a 20% Down Payment'
The 20% down myth has been going around for quite some time. Yes, 20%+ down you are going to avoid PMI (private mortgage insurance), which will save you some money per year, but there are many programs now catered to downpaykents as low as 0% down. The longer you wait to save, the more money that has been potentially non-recoverable by continuing to lease.
'I Need to Save More Money'
For some, it makes sense to wait and save for a down payment, future mortgage payments, or home repairs. But as home prices edge higher, so do rent costs. That's why buying might be a better decision than renting. This follows suit with 'I dont have enough for a down payment of 20% down' . The longer you potentially hold off on this idea, your money may not be going to best useage.
'I Still Have Some Time Left on My Lease'
I always say that transparency is key, and it goes without saying for this scenario. If a property manegement group owns the property you curently live in, you may be able to sub-lease or the property management group may be able to locate a new tenant fo fulfill your lease. Always check your lease status, sometimes after the initital 1 year mark of lease, you may have not re-signed and may be a TAW (tenant at all) which is a month to month lease. This can obivously work in your favor when considering to purchase, and giving ample time to your landlord, can have a clean lease break.
'I May Move in the Next 1-3 Years'
Do not think too far ahead, otherwise your thought process will be going in circles. If you do plan to relocate for any reason, why not invest your money into a property or location that is potentially a high-demand investment location. think close to public transportation, colleges, or accessible to major highways. Lease out the property upon leaving and start building your real estate portfolio.
'I’m Waiting the Market Out'
Waiting out for.....? As it is very difficult to determine what the market will turn into wihtin the next 1-3 years, remember this: its how you buy, not how you sell. There is always a solid deal out there if you are proactive, and learn the market. You will have to go to the deal, the deal does not simply come to you.
