With today’s surging real estate prices, you may be priced out of the market. If you can't afford to buy where you want to live, there is a solution. Don't stand by the sidelines as values keep shooting upwards. If you do, prices will always be just out of reach.
Maybe you don’t want to live anywhere else because your children are in great schools, or you are happy with your short commute to work. In some cases, there are up and coming neighborhoods close by, but the schools aren’t as good. Maybe you just don’t like the adjoining areas for any variety of reasons.
Don’t give up.
There is a way for you to get into the “game” so you can at least begin to build your future. If you wait you'll always be chasing prices. Get in the game now and use the appreciation to help you eventually buy your dream home in your dream neighborhood.
There are solutions.
Have you considered buying a small multi-unit property? You can purchase a 2, 3, or 4-unit home, live in one of the units and rent the others. Since rents are so high these days, this could add substantially to your income. When you apply for the mortgage, the lender takes into consideration the rents you receive or will be receiving from any units that are vacant when you buy.
These multi-unit homes are in demand so be prepared to respond quickly if you find something you like.
The other option would be to buy an investment property in an entirely different neighborhood. Depending on your budget, this could be something as simple as an inexpensive condo, or even a single-family home or 2-4 units. One word of caution regarding purchasing a condo as an investment. They have monthly homeowners’ dues which will cut into the rental income, so be certain the numbers make sense.
And don't say “what if we have another crash?” Real estate prices can go down, but your tenants will still be paying rent and you can wait out any downturn. When prices are on the upswing, history has shown that they soar!
Think you can't afford to buy? Think again.