Home Buying: The New Trend

by on Real Estate Investing

Woman with a Small House and Keys in Hands

One look at the current real estate market and it is definitely understandable why many more people are opting to purchase homes. With low home prices and unbelievably low interest rates, now is basically the perfect time to purchase a new home – especially with foreclosures on the market and home prices starting to rise (these current prices will not be around forever).

There are many people interested in purchasing homes in the current real estate market including everyone from investors to recent graduates and single women. Below are some essential tips and information for each of these three categories of potential homebuyers.

Investors: Buy to Rent?

Many investors are very interested in the low home prices that the current real estate market has to offer. Couple these low home prices with the high rental demand and you have the perfect condition for purchasing homes and turning them into rental properties – especially if the investor has an interest in being a landlord.

Although it is true that home prices are low and rental demand and rental prices are high, it is still essential to understand that purchasing properties with the intent of house flipping or turning them into rentals is still an investment and therefore never comes with a guarantee for success.

Therefore, if you are planning to purchase investment properties then make sure you closely examine the local real estate market as well as the home you are planning to purchase. For example, if it is a foreclosure or other distressed property, then make sure you calculate all necessary repairs into your total purchase price to help determine our chances of making a sustainable profit.

Young Homebuyers

With home prices and interest rates remaining remarkably low, homeownership is more often than not a better deal than renting a property, especially if you plan to live in the home for at least 3 to 5 years. Therefore, many recent graduates in the millennial generation are quickly jumping into the real estate market.

If you are a recent graduate looking to purchase a home, then make sure you thoroughly research the area in which you are considering purchasing. For example, do you plan to have kids in the next few years? If so, then it may be wise to go ahead and purchase a home in a good neighborhood with a great school district.

Furthermore, young homebuyers need to make sure to stay within their budget. Owning a home can quickly become expensive with the mortgage payment, homeowners insurance, taxes, and any needed repairs or renovations. Therefore, make sure you take into consideration every aspect of owning a home and the condition of the property you plan to purchase before signing on the dotted line.

All the Single Ladies

Even Beyonce knows what she's talking about – when it comes to real estate the single ladies are definitely purchasing more homes than single men. If you are a single lady looking to purchase a new home, then you probably have security at the top of your priority list. Therefore, make sure you closely examine the neighborhood and local news to find out if the home you are considering is in a safe part of town.

Furthermore, talk with your soon-to-be new neighbors to find out more about the neighborhood safety. Also make sure to examine exterior doors for any signs of being broken into in the past. Finally, make sure research everything from neighborhood crime rates to school districts and surrounding attractions – the same things that every homebuyer should look at when making a new home purchase.

In the end, the current real estate market is very enticing for investors, graduates, and single women. With distressed properties on the market for well under market value and low mortgage rates, many people are rushing to the real estate market to make their next big investment or new home purchase. If you have been holding out then the time to buy is now – before all the good properties leave the market as home prices continue to climb.