Few first-time home owners are able to go out and purchase the dream house. Purchasing any home is a big decision, but this is especially so for your first home. Many people still plan on slowly graduating to “better” homes as their growth in the corporate world rises. Some of these have not truly considered the cost of homeownership, and jumped into the waters before they were fully committed. They had not considered all the things which would change. They would not have a landlord to call for repairs, they had to tackle the repairs. They did not tell the banker they wanted the property taxes rolled into an escrow account, so that first property tax bill came as a surprise. They hadn’t realized all the things which came with their payment to that HOA (Mainly the forfeiture of many of their freedoms to make their home their own.) Many times, purchasing your first home involves us making some sacrifices. Be sure they are sacrifices you will not regret. I know of partners who have dropped out of college so they could have a home. It is hard to return to school after such a decision and the moneys lost due to the lack of education may be too high a cost for delaying a year or two before purchasing your first home. Before you purchase a home be sure you are committed to it before signing the papers. If the first experience is bad you may avoid the second and your plans become tossed and muttered along the wayside of existence.
As a General Contractor in California (CA License # B 6966623), and a (Real Estate Broker DRE # 02131799), I approach this issue differently than some. After the fiasco of 2008 I thought long and hard what I did wrong. I didn’t use my house as a savings account, nor did I borrow against. I used and still use it as an investment. I believe there is a lot of independence and opportunity go be gained by purchasing an old house and using some sweet equity to reduce some of the cost of homeownership. I like to help first time homeowners purchase a older home in bad need of deferred repairs. Buying an older home near the center of towns many times give larger lawns for children, and closeness to the community’s activities centers. But along with these come some sweet equity for many first-time homeowners.
I will take a structure down to bare studs to rebuild a home which is adaptable. Thus, I want to make sure the community my clients move into are the one they want to stay in for the rest of their lives. By building their home to meet todays needs with the ability to grow as life demands saves them thousands. When they reach retirement age they can stay in their homes where friend and family can help them with their needs. Also, Those who wish to grow and think out of the box will be able to form friend and partnerships with the neighbors and create business which improve the communities and the lives.
As I preform the tasks associated with building their first house along the way of it becoming their home many clients have invested their sweet equity. This has saved them thousands. Some have run into trouble but a simple call or visit can usually solve their problem.
There are certain items which in California you cannot tackle even if you know or think you know how to do the work without the proper licenses or certificates. Check with your building and safety department before tackling any project and pull the proper permits. When an unpermitted modification is discovered, it can be costly. They can make you remove it or prove you built it properly. They often fine you so that you discover there is no saving in unpermitted work. Simple tasks are able to save you plenty if sweet equity is something you can perform. Painting, replacing a vanity, installing tile, or laminate flooring are thing many homeowners can perform. I also believe many people find relaxation in doing their own landscaping and gardening. Many homeowners repaint and do those minor things themselves. Does it really make sense to purchase a home where the previous owner has remodeled it for their taste and pay the extra for their workmanship and materials use and then change it out to what you desire. Why not look for that right home which allows you to save for your sweet equity. Many find this process helpful in make the house their homes.
There are many approaches to first time home ownership take the time needed to be fully committed to which ever path you choose.
Note: Images on this blog site are from a free source or taken by the author. No image or group of photos is intended to represent the people the author serves. The author does not care about Race (that is a politically correct term that he does not like because we are all of the same Race, the Human Race. He prefers the term ethnicity, color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status.) He is a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662. He’s a member of the CRMLS and The East Valley Association of Realtors located in the Inland Empire region of Southern California.
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