Real Estate News

Getting new buyers beyond the homebuying stigma

Published: 04 Jan 2017

With the many financial challenges of homeownership, it's easy for buyers to get discouraged before they even enter the market. It's possible that a new home could be more available than they appear, as long as buyers make strong choices. For new or younger potential owners, in particular, purchasing a home could lead to a better sum total, making a better overall impact on finances as time goes by.

CNBC quoted David Bach, a millionaire and author who claimed that hesitance to buy could actually backfire, leaving Millennial consumers without the means to develop more funds. He argued that purchasing and owning a home makes more sense in a grander perspective: Buyers pay a monthly mortgage similar to renters, except they work toward eventual ownership.

With planning, the savvy buyer could end up with a home set to increase in value, leaving them with more assets than when they started. Bach even went a step further to say that owning property is essential to gain wealth.

Of course, to do this, the buyer also needs to commit to better money management and spending practices. Realtor.com recently reported on several problem behaviors, including failing to make card payments, opening too many cards or changing jobs right before shopping for mortgages.

At the same time, having no active credit cards could rob buyers of a chance to build their credit. It could be more beneficial to look at these as chances to develop a good score as opposed to just a source of debt.

Consistent payment on loans, including student loans, can be a key prelude to an actual sale. If there isn't a solid foundation of good payment history there, buyers may not have the good financial standing they need to get approved.

On the same lines, buyers should think of possible threats to their standing and ward them off with title insurance. This is a vital purchase which can protect new owners against challenges.