There are wide array of benefits for buying real property. From social to economic, and even political, benefits of owning real property can't be easily counted. Real property offers an anchorage to family geographic zoning. Owners enjoy the benefits of forming closer connections with their community, through local businesses, schools, worship places and neighbors.
As always, economic benefit is a good starting point. Did you know that by paying $900/month rent you are throwing away $54000? Yes, rent is a waste of money. Rent can't be even claimed in tax returns. In contrast, monthly payments towards mortgage payment plan will expand homeowners' wealth as equity is created. Moreover, buying a real property increases credit rating through regular payment history and location security. Even more, real property buyers can claim interest in their yearly tax returns (consult a tax expert for more details).
On the political level, homeowners exercise more influence on political decision makers. Because most county and state profits are based on real property taxes, politicians answer demands of property owners before renters (who are usually relocating). For example, when the financial crisis struck the U.S. markets in middle of 2007, the federal government quickly enacted laws to protect property owners. The same issue played a crucial role in 2008 Presidential elections.
In addition to economic and political benefits, real property buyers enjoy better social standings. Because property owners are more constraint to move, they form social networks with their local community. Neighbors invite each other for birthdays and other events. Housewives form local groups to help raise the children of the community. Even in safety, most communities utilize local neighborhood watches to keep crime level at a low level.
Finally, by buying a real property, individuals achieve the American Dream. Thanks to the U.S. government system, ownership rights are at the foundational core of the United States. A sense of accomplishment and satisfaction beholds property owners as they are free to express themselves within their own castles. Buying real property is as simple as desires of potential buyers.
Buying real property is unique. Real estate transactions are different in size, but not in nature, from other purchases. In dealing with real property, potential buyers need to consider more variables such as potential income growth, term of loan and area (as real property can't be relocated). Also, buying real property carries a longer responsibilities and commitments than most of other types of purchases. For most Americans, buying a real property is going to be the single highest transaction they will be involved in.
Here are potential steps for figuring out how to buy a real property:
Survey: Before looking at the outside, look at the inside. Examine your life style and the life styles of those you are responsible for. Hold a family meeting to ask of input and share thoughts among the household. Examine your financial capacity, and factor in costs for moving, basic renovation and change of a life style.
Research: Now, you can look at the outside. Research how others enjoy their properties and what type of property matched their needs. Visit and talk to loan officers to understand how your mortgage qualification level. Next step, begin conducting online search to identify potential areas of interest. Also, you are advised to visit state department of real estate website as well as read financial news.
Define: Compare your survey findings with your research results. You will find common grounds allowing for the creation of starting goals.
Physical inspection: Because real estate transactions are huge in dollar value, your efforts will need to match it. Once your real property goals are defined, visit areas of interest and conduct an inspection. It is recommended that you visit the same city during three different time periods (morning, afternoon and night) in order to get a sense of how the local community will affect your lifestyle.
Choose an agent: After knowing what you want, look for a real estate agent to represent you. Use the directory from the state real estate commissioner website to locate some local agents. After checking their credentials, contact at least three agents and visit their office. Ask each one to prepare a list of available real properties including a possible breakdown of costs and fees. After talking to each agent, compare and contrast what you heard, then make a choice. Remember, real estate transactions are complicated. By hiring a real estate agent, you are expanding the probability of bigger return. In addition, local real estate agents are connected to their communities allowing them to give you a more detailed assessment of available properties.
Inspect: Your agent will offer you tours of different homes. Make sure to go to as many as possible because those tours will allow you to understand the life style of your future will-to-be neighbors. In addition, you will gain a better idea of real property condition in your area of interest.
Consult: Again, real estate transactions are very multifaceted. You are advised to seek legal and accounting counsel form licensed professionals.
Offer: If all is ok, make a realistic offer. It is always a good practice to condition your purchase offer on a secondary physical inspection, appraisal value, and termite report.
Review: Ironically, many home buyers ignore this last step. You found the perfect property and made an offer. After the appraisal and termite inspections had been completed, ask your agent to deliver you a copy (most likely will be in a PDF format). Examine and read those reports in addition to the title report. Remember, you paid for those reports and you hold the right to get a copy.
Decision: If satisfied, congratulations for you will be buying the best real property available to fit your needs. If you are not satisfied, talk to your real estate agent to examine your options; and then, restart the whole process.