Buying what you can

Recently I had the opportunity to assist my daughter with buying a condo which was really fun. Since then I have helped quite a few of her friends buy their first homes as well. At the time, my daughter and her friends had all been out of school for about 4-5 years and had saved up enough to put 10-20% down on a home purchase. They were motivated because they were tired of moving and paying rent. They wanted to own, have a place they could call home and build equity. 

As they decide to buy they each went through a pre-approval process with a mortgage broker who helped them figure out how much they could purchase and their finance options. Once this was completed they each had to decide what best fit their needs. If they wanted to live in the city or move a little further out, what made the most sense for them personally (work, social, hobbies etc.) and financially as we toured homes/condos/townhomes in the various neighborhoods in and around Seattle. 

I saw each of them become very creative in their decision making. For example: one decided to buy a two bedroom condo in the city close to everything and then found a roommate to help with the mortgage payment, basically becoming their own land lord. Another took advantage of no commute/work from home and decided to buy a bigger home in a good neighborhood a little further out from the city. Several decided to buy homes that needed updating that they could do over time. They were excited about the potential of “DIY” projects, learning new skills and increasing the home's value. 

Being a first time home buyer is fun and exciting, and it can feel a bit daunting until you explore your options. Real Estate prices will always go up and down, but mostly they have proven to go up. Becoming a home owner will create opportunities for you in the market and help you build equity which gives you a “trading card” in the future. When the time is right you can trade up to a bigger home, a better neighborhood or both or buy a second home and turn your exiting home into a rental income property. Most importantly, becoming a homeowner provides you with an opportunity to create your future lifestyle.

Begin your home search here!

Tracey Kipp