Congratulations on your upcoming wedding!
You’re probably busy with the wedding planning, but you might also be thinking about a buying a house for you and your hubby to settle down in.
If you are thinking about a house, here are a few things to consider.
1. A lot of people who bought before the “bubble burst” a few years ago “over-extended” themselves with mortgages that took up a huge portion of their income. A lot of these folks have been foreclosed on and started the early years of their marriage out by getting into financial trouble. Let’s not see that happen to you!
2. There are great opportunities to buy really nice homes at low prices if you know where to look for them. And mortgage rates are super low, so if you’re smart about not overextending yourself, you can probably get a lot of house for the money.
3. If you “buy less house than you can afford” you’ll be setting you and your husband up for long term financial security. Because after all the dust settles, say in 5-10 years we should see house values start to climb back up to where they were a few years ago… which means nice “appreciation” and wealth building for you and your new family.
Think “Starter Home” Not “Dream Home”
If you’re like a lot of new brides you have the image of the white picket fence and the “pristine” condition charmer of a home with tons of space in mind.
Which is fine.
But if you really want to set yourself up for long term wealth and security, maybe you’d be better off taking on a lower monthly payment, and getting “less of the amenities” that you have in mind…
Or think “Investment Property” Instead…
Here’s an approach that some “practical” Newlywed Homebuyers are taking:
1. They’re looking at their first home as their first “investment property” — which means they’re paying less attention to immediate comfort and more attention to “long term wealth.”
2. So, they’re choosing to look at properties that have been recently foreclosed on. And fixer uppers… and in some cases “Multi-Family” properties where they can live in one unit and collect rental income from the other (to help pay for the mortgage.)
3. They plan to live in this first property for a few years, then “trade-up” later when they’re making more money, or they can take a profit on their first investment.
3. These “savvy” newlyweds are starting their financial lives together on a very sound footing — some even have a plan to buy a property every year until they retire… wealthy and relatively young.
(Think about it, how comfortable will you and your husband be if you own 20 properties in 20 years…. You bet! Comfortable for sure… sipping mojitos on the Beach!)
Where Can I Find the Kind of “Starter Investment Properties” You Mentioned Above?
Does this all make sense to you?
You’ll go get married, enjoy your wedding day…Maybe take a well deserved honeymoon vacation…
Then find a modest place to live, that you can easily afford…
So you can start building long term wealth for you and your family…?