My favorite quote about real estate is by Will Rogers, "Don't wait to buy real estate. Buy real estate and wait." The land is limited. People will always need a place to live. So, it is apparent that real estate is one of the most satisfying and lucrative asset classes out there. And it has been for centuries. Whoever owns the land is called a LANDLORD. A landlord can choose to rent his/her land or property and in return, collect money. A person who owns real estate does the work once and potentially has a forever source of passive income. Cool huh?
Real estate investing is for everyone. For first-time homebuyers as well as seasoned investors. This article is dedicated to first-time homebuyers. Average Joes like you and me. People who dream of having their own home. Their first home. Their forever home. Their dream home. Some first-time homebuyers want to purchase their first property as a stepping stone and eventually purchase more investment properties down the line.
But some folks want to purchase a home only once. A forever home where they would want to get married, raise a family, celebrate joys, overcome sorrows, and eventually retire. It is these folks who are more likely to procrastinate and wait to tick all the boxes before they make a move. They say they are not ready yet or they are going to buy soon but never do. Eventually, they end up waiting on the sidelines for far too long before they realize that they are stuck and have missed the opportunity that was presented to them. They waited for the perfect time or a perfect property that never came.
Having said that, it is certainly not recommended to buy the first property you come across without doing your due diligence. For most people, buying a house is the largest purchase ever in their lives. The point being is that it is always the right time to buy a home. Regardless of what your neighbor is saying, what the market is doing, or what the television doomsday experts are predicting.
Educate yourself, run the numbers, and do your due diligence. Numbers don't lie. If the numbers work, real estate will work too.
3 reasons people tend to wait and what to do in each scenario-:
It is overwhelming- As mentioned above, for most people, buying a house is the largest investment or purchase ever they are going to make. So it is understandable that people want to take their time and ensure they are not going to lose their hard-earned money. The problem arises when people wait far too long to tick all the boxes or are too scared to make a move. That's where the due diligence comes in. If the numbers work and the house fits in your criteria, do not be afraid to take action. Your future self will be proud of you.
Timing the market- Some people wait to time the market. They pay too much attention to the doomsday experts on television or their neighbor who is always predicting that the sky is going to fall. Like the stock market, the real estate market has its ups and downs. But the properties tend to appreciate year-over-year over time. Nobody can predict what the market is going to do, or when the prices will fall. If someone tells you they can, run far away from them, as fast as you can. Too many people waited before the pandemic because the experts were predicting that real estate prices are going to crash. However, the total opposite happened and home prices skyrocketed. People who bought their homes just before the pandemic (including myself), were able to purchase a home at a substantial discount at that time and are now sitting on a sizeable amount of equity in their homes. Whereas, people who waited for the prices to fall found themselves priced out of the market. Having said that, it is my recommendation to buy an older home with cosmetic defects that you can fix over time while living in the home. This way, you can bargain and purchase the property at a discount and gain instant equity once you make those cosmetic renovations.
No money saved- The beauty of real estate is that you can purchase a property with very little money of your own and leverage the rest through financial institutions and local lenders. For instance, as a first-time homebuyer, if you want to purchase a $100,000 home, you'd potentially need as little as 3.5% as a down payment. Moreover, most institutions and lenders assist first-time home buyers with grants that can be used toward closing costs or provide low-interest loans.
So there you are. Do not wait to buy real estate. Buy real estate and wait. I am a licensed realtor in the Baltimore area of Maryland. I have a great network of local lenders who are exceptionally skilled and resourceful. They will assist you through every step of the home-buying process. They can educate you about market updates and provide you with all the financing options and loan assistance programs available to you as a first-time homebuyer. Hit me up! Good luck to all first-time home buyers.
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