Today’s real estate market has so many people puzzled on how to move forward with the most suitable option for housing. We are fortunate enough to live in a place where your mortgage payment will often be equal to or less than your rent payment and owning a home is not only a reasonable option, but also the best one. Homeownership is exciting, challenging and wonderful. It is a solid investment, that on a year after year average, continuously appreciates. It’s an excellent way to diversify your financial portfolio.
Consider this, if owning an entry-level home is not your cup of tea, owning investment property might be. We are seeing a massive housing shortage in Southeastern Idaho and owning property, even in areas that are sometimes considered transitional, could mean big returns for you. The highest returns are happening in the lowest price ranges and if you are in it for the long haul, real estate is the way to go.
Deciding to get into the real estate market is a great decision. Knowing what to do to get you there is another story. Many moving parts to a transaction keep things interesting, so much so that at times we forget what healthy homeownership actually means.
Understanding the basics: principal, interest, property taxes, hazard insurance and mortgage insurance, only take you through the initial stages of the buying process. It is so important to understand what is required of a property owner after closing. Budgeting monthly for both anticipated and unanticipated repairs is pivotal in successful healthy homeownership. Having reserves is required by your lending institution for the use of paying taxes and insurance on your behalf. Make sure you give your wallet the same consideration. So many homeowners, including experienced ones, couldn’t financially handle a moderate repair, let alone a catastrophe. Preparing your bank account and your lifestyle for unexpected housing expenses is pivotal to not only healthy homeownership but happy ownership as well.
While realtors are not financial advisors, we do know a thing or two about how markets operate, market trends, past market downturns and appreciation. Considering the big picture and preparing for financial health will make the road to property ownership much smoother.
Click here to read more of the September issue of Idaho Falls Magazine.