Foreclosure Houses For First Time Buyers
While investing in foreclosure houses, especially for first time owners is really a wise option, one should not believe all the promotional babble about foreclosure houses being the best type of investment anyone can make.
Not only are foreclosure houses subject to the market forces, there is also the issue of maintaining the property, which is a constant.
If you are looking to invest your money on something, its best to keep your options open and consider avenues other than real estate, such as stocks and bonds as well.
You can even diversify your portfolio so that you have interests in all three.
Foreclosure Houses Can Be Your Well of Funds Never look upon the foreclosed home that you purchased as your credit line.
A lot of people fall into the trap of borrowing against their equity.
So they enter into mortgage refinance agreements to pay off vacations or send their children to college.
In hindsight, they must have realized it was not a really good idea to begin with.
Before going down that route consider first that home values may decline, which will leave you with a fat debt that you are simply unable to pay back.
You should always leave an equity margin to protect yourself in the event that you may have to resell your home yourself.
Homes in the Suburbs Are Way Better Than Those in the City For first time home owners especially, a home in the suburb is the only option.
That is because suburban lands are cheaper.
Suburban foreclosure houses have hidden costs that can take their toll on your finances in the long run.
The most obvious cost and probably the most significant is transportation.
Living at the outskirts of the city means that you have to commute to the city for your job or your kids schools or the stores, the doctors and even the entertainment.
Then you find yourself in a situation where the savings you made from purchasing a cheap foreclosed properties have all been spent on transportation.
Knowing these things should not turn you off buying foreclosure houses, if anything this information should help you in your decision making.
Not only are foreclosure houses subject to the market forces, there is also the issue of maintaining the property, which is a constant.
If you are looking to invest your money on something, its best to keep your options open and consider avenues other than real estate, such as stocks and bonds as well.
You can even diversify your portfolio so that you have interests in all three.
Foreclosure Houses Can Be Your Well of Funds Never look upon the foreclosed home that you purchased as your credit line.
A lot of people fall into the trap of borrowing against their equity.
So they enter into mortgage refinance agreements to pay off vacations or send their children to college.
In hindsight, they must have realized it was not a really good idea to begin with.
Before going down that route consider first that home values may decline, which will leave you with a fat debt that you are simply unable to pay back.
You should always leave an equity margin to protect yourself in the event that you may have to resell your home yourself.
Homes in the Suburbs Are Way Better Than Those in the City For first time home owners especially, a home in the suburb is the only option.
That is because suburban lands are cheaper.
Suburban foreclosure houses have hidden costs that can take their toll on your finances in the long run.
The most obvious cost and probably the most significant is transportation.
Living at the outskirts of the city means that you have to commute to the city for your job or your kids schools or the stores, the doctors and even the entertainment.
Then you find yourself in a situation where the savings you made from purchasing a cheap foreclosed properties have all been spent on transportation.
Knowing these things should not turn you off buying foreclosure houses, if anything this information should help you in your decision making.
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