Most People Can Make Home Ownership a Reality
When you think of the American dream, you usually think of owning your own home. You envision a beautiful house with a white picket fence and flowers in the front yard, or maybe a new luxury condo with awesome views and amenities. Whatever your idea is of the perfect home, it is all part of the American dream.
What you may or may not know is the dream can be a reality for most people. No matter who you are, your age is or your economic background you, most people can own their own home. All you have to do is some planning to make this dream a reality.
The first step to home buying is to save some money for your down payment and for the closing costs. Whatever your income is, you need to save some of it each month. If you are finding it hard to save money, you may want to assess your spending habits and start a budget for yourself. There are many things that we spend money on and may not be aware of how much it adds up to over time.
For example, as a former regular at Starbucks twice a day, I came to realize I was spending $2,000 a year on my daily cups of coffee. Of, it you go out to eat a lot, you may also be spending several thousand dollars a year without realizing it. Perhaps you like to get a drink at a nearby bar, which all adds up on a yearly basis. Add to that a lot of beauty treatments women are often get like manicures, pedicures, and you can start seeing where your money goes.
I have known many people over the years from different walks of life and different income levels. What has surprised me is that some of the folks with smaller incomes can be more financially sound than those with large incomes.
Consider the case of a cleaning woman, someone you may think lives from paycheck to paycheck. In fact, she may in fact have 2 homes, money in the bank, and no debt. I’ve seen this with immigrant families who come to this county with nothing, and are able to save money because they are not accustomed to spending money as freely as others.
My message is simple. Be responsible for how you spend your money. Live beneath your means and always put money aside for savings. If you do not own a home, start saving money for the down payment. If you do own a home, consider saving money for a down payment on an investment property or other type of investment.
The FHA loan only requires a 3.5% down payment, offering a low cost way for today’s first time buyer to get started with home ownership. We are currently in a phenomenal period to buy real estate, the best in a decade or more. Prices are at the low end of the curve and interest rates are still close to historic lows.
Think about it, consider making a change to your spending habits, and assess whether this is a goal you want to achieve. Studies show time and time again that the public values home ownership and the communities that it creates. Is it the right time for you?