Timberhawk Utah and Idaho Townhomes

Historically, investing in Real Estate has proven itself to be a path to building and preserving wealth.  If you are in the market for a new home, there are 5 critical things you should consider before buying that home.  Taking five minutes to read these important factors could save you ENORMOUS amounts of stress and frustration in the future.

1. BUY A LESS EXPENSIVE HOME THEN YOU CAN AFFORD. Many people purchase homes that are technically in their price range but are simply take up too much of their monthly income.  They make the payments each month but live in a big nice debtors prison. They cannot afford to enjoy life because after making their house payment there is very little left.  At Timberhawk we think it is much better to buy a more affordable home and have some disposable income to enjoy life!  Don’t make this critical error I have seen far too many people make and regret for a long time.
2. LOCATION, LOCATION, LOCATION. Homes in well maintained or “up and coming” areas have a higher perceived value and usually sell much quicker then homes in older neighborhoods.  You also don’t want to be the most expensive home in the neighborhood because the smaller homes will negatively affect your property values.  Conversely, if you are one of the lower priced homes in the neighborhood, the larger, more expensive homes will have a positive effect on your property values.
3. CONSIDER THE VALUE OF BUYING INSTEAD OF RENTING. Unless your current housing needs are very short term, buying is almost always better than renting. Renting a home can put a roof over you head but it comes at a high price. Money spent on rent can never be recovered. Many people waste tens of thousands of dollars on rent when they could be building equity in a solid investment by buying a home.  Buying a reasonably priced home is almost always a good investment.   Following are some of the advantages
   1. Right now is a perfect scenario for homebuyers.   Historically low interest rates, tax credits, government incentives, and the lowest home prices in years make now a great time to start investing in real estate. Interest rates and prices are cyclical and will go up in the future so start building your future now.
   2. A 30-year low interest rate loan on your own home is a great hedge against inflation. Many analysts have predicted inflation rates to rise in the near future. Your mortgage payments cannot increase with other prices as inflation rises, so if you purchase a home now and lock in a low rate you will be making the same low payment as inflation causes prices on everything else (including rent) to go up.
   3. Tax Advantages.  A homebuyer can write off 100% of the money spent on mortgage interest.  This can add up to significant tax savings in the early years of a loan when interest makes up the largest part of your payment.
4. BUY A HOME THAT YOU CAN RESELL IN THE FUTURE. Homes in the highest price ranges are the most difficult to sell because the potential buyer pool is smaller. Homes in the mid to low price ranges have the largest buying pool and shorter turn around times. In addition, in a down economy entry-level homes usually retain their value while high priced homes are discounted, usually drastically, for a quicker sale.
5. HAVE AN EXIT STRATEGY. When buying you should consider how long you plan to live in the home.  You need to consider what you will do with the home when you leave.  The most obvious answer is to sell it, but what if you had to rent it?   Your mortgage payment usually determines what you will ask for in rent so a higher priced home usually rents for a higher price. If the rental price is too high, your home will be hard to rent.

Your home is an essential part of life.  Your decisions concerning housing can make the difference between simply living and thriving. Buying a home is almost always better financially than renting and if you buy a home that is priced right for you at the right time, you can make a significant difference in your daily life and your future.