Can Young People Actually Afford To Buy A Home Today?

Can You, a Young Home Buyer, Buy a Home You Can Actually Afford? Can you do it better and smarter than your parents did?

YES!

There are a number of strategies people can use to buy a home for an affordable price. It may well be the best chance you have had in recent years.

Didn't it seem ridiculous for people to pay $500,000 for some hovel in California?

It certainly was.

Don't copy them.

For savvy shoppers there are better opportunities out there.

The big caveat is, forget flipping houses. It is SO over. You need to look for a place you can stay in for a long time. Values are still actively dropping no matter what the government tells us.

Whatever house you buy needs to be something you can love and stay in, maybe for life.

And you want to avoid the old 30-year mortgage. It's just not smart in the current financial environment to obligate yourself to one of these long-term loans.

Look for a property that is just where you want to live.

Here are some strategies to help you.

1. If you need a commercial space where you can live over your store, look for that kind of space in the city where you need to live and work. Many cities auction off buildings where there has been illegal activity for very little money. They WANT a taxpayer in that building, not a bunch of bums or drug dealers.
2. Some building owners and homeowners are behind on taxes. Eventually the city will condemn the building and maybe sell it for very little money. Have cash so you can bid on these types of opportunities.
3. Bid on foreclosures. You have to be a little careful not to overpay. Banks ARE all about greed. Do your homework, have financing lined up and have as much cash as you can afford. Look for value just like you do when you shop for anything else.
4. Put in sweat equity, but don't incur debt. Financing costs can make any place too expensive. Paying interest is SO lame. It makes you a bank slave. Isn't slavery illegal? It's not fun at all. You want to have money for other things you want. You don't want to spend all your hard earned cash on financing.
5. Build your own house. This is a strategy whose time has come. There are lots of how to books to help you do this. Get together with friends and build your own neighborhood. Not only is it possible to build your own home for very little money, it is also possible to build it "Green". Imagine having a nice self-built house with low utility bills. It's a great way to avoid your parent's mistakes and have a much sturdier home. A lot of the things that make a house "Green" are things that are not expensive if you build them in initially. An earth-sheltered home is cool in summer and warmer in winter. Passive solar just requires windows in the right place. Reusing gray water requires a cistern. Many American farmhouses had all these things in the 1800's. Everything old is new again and can save you big $$$.

This is one of those times when you want to be really different from the older generations. Look for different opportunities and maybe a really different life style. There isn't much good to copy in home ownership in the last 30 years. Find your own better way.


Paula works with her husband Ron in his private mortgage note buying business. Learn more about mortgage note buying and selling at their websites at Sell My Note and Note Buyer