In the past few years we have had the extraordinary opportunity to get into homes with very little or no money down, and often adding all our closing costs so owning a home, initially cost nothing to move in.
How neat is that?
Some rules that make this a beautiful concept is the longevity of staying in the home long enough to earn equity. In our market in Texas that is about 2% per year.
150,000.00 home will earn about 3,000.00 per year. That means in five years you will have earned enough to pay your closing costs to sell.
Hence , "pay me now, or pay me later". There is nothing wrong with that concept, IF you know that,going into your purchase.
Some proactive things you can do:
1). Assess the money you saved to purchase, and start a fund to pay back yourself
2). DO NOT!! get a home equity loan, or use your home for collateral for a personal loan.
3). DO keep the home squeaky clean , inside and out. Paint every 1-3 years, clean baseboards, ovens, stove tops and light fixtures on a regular basis.
Just a few things to ponder before getting that"EXTRAORDINARY DEAL"
What do you think?
Dee
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