JSOnline: Younger buyers see home as short-term investment
The Wisconsin Realtors' Association's 2005 Profile of Home Buyers and Sellers published suggest that young twenty-something's are entering the real estate market to invest not only in a home, but for their future. Over half of first-time home buyers in Wisconsin are between the ages of 25 to 34. More than half of my business is assisting young professionals who work downtown and who want to live downtown. Most of these individuals are currently renting and are now looking to invest in their future, as well.Gone are the days where buyers find their first home and live in their first home for 20 years. Today's first-time home buyers are looking at their first home as an investment - a short-term investment. These days, buyers are looking for neighborhoods where they know the market will appreciate the fastest. In addition, buyers are looking for neighborhoods that will satisfy their needs for close entertainment. Most of my business focuses on the market place in downtown and its surrounding neighborhoods where there's plenty of entertainment options nearby. Another popular real estate market is Bay View because of its affordable homes, access to Lake Michigan, near restaurants, boutiques, and other nightlife, and near downtown.
Unfortunately, the City of Milwaukee contains thousands of older homes that will need a great deal of improvements in order to generate the type of appreciation that buyers are looking for. I suggest that buyers establish reasonable expectations before they begin their search. Set the tone early and enhance your ability to see past cracked ceilings and other cosmetic issues (paint, wallpaper, dated cabinets, counter tops, appliances, bathrooms, etc.). For many of my first-time home buyers, they have not prepared themselves for what is available in the market place. It is difficult for them to see past these cosmetic flaws in front of them and to imagine what their home will look like after they move in.
Buying your home, whether the first time or hundredth time, will be your #1 largest investment you will ever make - unless you have a second home in the Bahamas or some other tropical island. There are a few items you can do today to prepare you later with your investment:
* Start saving for your down payment and closing costs. The more you can bring with you to the closing table, the more you will save later in interest.
* Start making positive choices with your credit. The better your credit score, the better the interest rate you will be able to get when you apply for the loan.
* Monitor your credit scores: Pay bills on time and don't apply for credit cards every time you're offered one.
* Over time and with making positive choices, your credit score will improve.
Amy Guckeen, writer for The Milwaukee Journal Sentinel, shares her thoughts on this topic. Click here for more advice and other suggestions to prepare you for your largest investment>>>
Labels: Finance
posted by David Ray @ 10:10 AM
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