First Time Home Buyer –
Are you FIRST TIME HOME BUYER looking for a home with an affordable monthly payment but having difficulty finding that perfect home?
Here are some numbers. A 400k home with 9k in taxes and a minimum down payment will give you a mortgage payment around $3,000 per month. That same home probably also needs some work which requires more money!
This is almost the exact situation for many first time home buyers out there on Long Island! So are there any alternatives?
My answer is yes! Let’s think 5 years forward. In 5 years, you will likely need more space in your home if you are starting a family. In addition to this, you will likely be earning more money which is why people like the idea of a starter home. Get something now
So are there alternatives??
My answer is yes. Think about getting a home with rent potential. Go find a 450k home that has an accessory unit or basement rental that may get you something like $1,250 per month. Now your mortgage payment will be higher at approx. $3,500 per month, but when you are getting that $1,250 per month in rent, your net mortgage payment is only $2,250. Now you use that other $750 to save, renovate etc.! When the time comes that you need the space because of your growing family, you simply kick out the tenant and grow into the house.
The starter home is dead on Long Island. The closing costs associated with buying, selling and buying again are just too high to make sense. So this is a great alternative. Buy more now, have a smaller monthly mortgage outlay because you are getting rent, bank those savings and when the time comes where you need more space, you just grow into the part of the home your tenant has been using.
This is the smartest route for a young and growing family looking for their first home!
Think about it and call us if you have any questions!
DAN COSTELLO – EVOLUTION MORTGAGE – 516-865-2550 – #ALWAYSAWESOME