buying residential real estate Archives - Khani & Auerbach Hollywood FL Real Estate Lawyers

Gratefully, the nation’s housing market for 2018 is looking good, but we continue to see first-time millennial buyers struggling with affordability, especially in high-priced areas like Los Angeles, San Francisco, Boston, New York and Washington DC.

Various Florida residential real estate markets continue to be affordable markets. Interest rates and home prices are both rising, so first-time home-buyers, a majority of which are Millennials, are encouraged to make the switch from renting to owning sooner, rather than later.

Mortgage rates will inevitably rise, and this increase will only result in existing borrowers/homeowners STAYING PUT. Rising rates may also lead to homeowners seeking home improvement loans or home equity lines of credit instead of moving. Less movement in real estate, means less inventory.

So, what’s driving the housing market? Strong buyer demand, limited inventory, and first-time buyers. The first two factors being the more important for setting the real estate industry’s tone.

There is definitely a shortage of “good properties” and finding that perfect property tends to be the problem for most Millennials. That’s a large part of the reason we are recommending that Millennials try to be realistic, not have expectations of moving away from renting right into the home of their dreams. The home of their dreams will come with time, but buying something affordable is a great way to start the home-buying process

With increased demand and good appreciation, first-time home-buyers can eventually move up to the property of their dreams. This all doesn’t happen overnight and that can sometimes be frustrating for people who may be used to getting instant gratification.

So, what’s the bottom line here? Take baby steps. Buy your first home, but be realistic and find something affordable. Don’t live for your house, but live in your house. The American dream will follow, but whatever you do….STOP RENTING!

At Khani & Auerbach, we are dedicated to providing as much information to assist you in becoming a home buyer. Please be sure to follow us on Facebook, Twitter, Instagram, LinkedIn and Google+ for additional useful information.

Easy to say, hard to do, but there are things you can do now to get you closer to residential home ownership. For years, you have been paying rent to your Landlord or even worse, living with your parents. Here are some things you can do right now to prepare for home ownership.

1. Save Money. Put away a minimum of $50 week. (That’s approximately 2 items at Starbucks per week) If you do this for at least 2 years, you will have saved up $5,200. You can do it!

2. Check Your Credit. Don’t do this often, but make sure you get a gander at your credit report history and see what’s going on there. Stop applying for revolving credit accounts, like department stores, they don’t help, they hurt your score. Only spend what you have. If you do use a credit card, always pay off the balance in full every month. If you already have a balance on your credit card, pay that off as soon as humanly possible. The only ones who benefit from a balance on your credit card are the credit card companies. You don’t want to end up paying $100 for a $5 cup of coffee, you just don’t.

3. Talk with a Mortgage Professional. Find out exactly what it takes to qualify for a mortgage these days. These qualifying requirements change, almost on a daily basis. If you know what you need to do to qualify for a mortgage, it takes the mystery out of the process and gives you a goal. The goal being, getting a mortgage to buy a home of your own.

4. Talk with a Real Estate Agent. Learn what the market is out there and what you think you can realistically afford. Make sure your proverbial eyes are not bigger than your stomach. Don’t try to keep up with everyone else, but rather look in communities that are close to work that you can realistically afford.

5. Stop Accumulating Debt. These days, people are less interested in accumulating things and more interested in accumulating experiences, but keep in mind, both can be costly. Before you take that expensive vacation to hike in Colorado or the Grand Canyon, think about what might be available in your own backyard and accumulate your experiences there so you can stop accumulating debt.

6. Get a Job. Yes, you want to help others and be charitable. It’s an honorable thing to do, but charity begins at home. Be employed and always make money. It’s good to be self-employed, but the problem with self-employment is that you don’t always show a healthy income and that’s what lenders are looking for when they decide whether you qualify for a loan or not. You have to show at least two years of qualified income in order to qualify for a loan. Sometimes, you don’t get that dream job, with that dream income right away, but it’s a step in the right direction and can ultimately lead to home ownership. If you have stable employment, it’s going to make a difference. Remember, home ownership is the goal.

7. Don’t Fear Fluctuating Rates. Mortgage Rates will never be as low as they have been in the past few years, but have no fear! Rates won’t be so high that you will be precluded from obtaining a loan at a reasonable rate.

8. Inventory Will Increase. Yes, for the past few years, it has been a Seller’s market and inventory was definitely scarce. In 2017, however, you will see a change in that scenario. The prediction among most real estate professionals is now shifting and the feeling is that we are moving away from the limited housing inventory and towards a Buyer’s market. The bargains are already popping up in the most unusual places, but you have to be willing to shop.

At Khani & Auerbach, we are doing our very best to remain at the forefront of the real estate market. We will continue to educate ourselves, our clients and real estate professionals. If you have any questions, please feel free to ask us!