Why Is Now the Right Time to Buy a Home?

Home ownership just scares the bazookas out of me, but yet I'm excited at the same time. I can't say that financially I'm entirely ready for it, but I can afford to do it. I just need to be more creative with my time since I won't be able to spend any money for awhile :)

The real estate market all over the US is very volatile. You have some places where the market is staying consistent - meaning prices haven't increased or declined much (which can keep the dream of home ownership out of reach for some people). Then you have places like Colorado - I must use the Denver area as an example - south around Parker, although sales are down, they are still steady and folks don't have to sacrifice the price of their homes - most are newer. There are people that will buy them for asking price. Then there are the places that I have been looking - the city of Thornton, for example (north Denver Metro). Up there, the homes are older, built mostly around the 60's- 70's. Yes, older, some with what we would deem now as non-flexible floor plans and smaller. However, they are the dream homes for those that like to fix up houses. The opportunities are tremendous!

For the property I am trying to purchase, it is the opposite of what I wanted to get originally - a ranch style 3 bed, 2 bath with garage. It is a 3 bed, 2-1/2 bath, but 2 floors and a carport. Not my ideal living arrangements; but for the short term it will do. Purchasing a property to fix up and sell in a few years - an investment property in my case - is what I decided was the best choice for me. Setting up an FHA loan where I don't need to have so much money down to purchase a home, is the first step to making this work. Michael, my mortgage guy, helped me figure out the best way to go in financing, helping me keep my closing costs down to a minimum - and he has accomplished that nicely! But I think the biggest thing for me in this entire decision is that I found a property that really is a killer deal. The market will bounce back in 3-5 years, by which time I will be ready to sell and should be able to make a tidy profit on it (hopefully I won't get killed in capital gains taxes, but we'll see who is voted into office and what changes are made by then). I'll be able to pay off any remaining bills I have and become debt free; then purchase another home that I will like more and stay in longer.

So, today's investment will definitely help me towards my retirement in the future. Who knows - I might like doing this so much, that I'll keep doing it for a few more homes.

I also have to mention - as I look at the prices to fix/replace items in the home, it has been brought to my attention that there are many other places in which to go to purchase what is needed for home improvement. Originally, I wanted to purchase the new appliances that are desperately needed in this home, and all new everything (via Home Depot, Lowes and Appliance Factory Outlet). But realizing my budget that I have for the immediate fixes, that will have to wait. My friend Stephenie recommended that I check out the Habitat for Humanity store as well as another place called Bruces (?). They have new and used items, selling them inexpensively. In addition, purchasing from them makes a percentage a tax-deductible donation right off the top. I went to the HFH the other day and was pleasantly surprised by what I found. Now, none of the appliances are new; however, they are usable. Each is cleaned up and priced to sell. You can get stoves for $100 and refrigerators for up to $300 (the one I found had bells and whistles on it - doubt it will be there when I go back, all I can do is hope!). They also have new tile, wood flooring, caulking, everything you would need to do home repairs. Even kitchen and bath sinks! Wow - I'll be able to get a lot of bang for the buck at this place, allowing me to fix up my abode and make it look better than it ever has.

I'll find out at the end of this week about the finalization of loan acceptance. Until then, I wait. . . ugghh.