Are you starting to get tired of paying your monthly rent to someone and never building any equity? Renting forever can be a significant pain, especially as you’re contributing to someone else’s financial well-being. The good news is that there are affordable real estate options out there for those investing in their first home. We will share a few excellent reasons why an apartment might be the best choice for a first-time home buyer.
A Manageable Monthly Payment
In most real estate markets across the country, apartments are available at a significantly lower cost than a full-sized house. Buying a less-expensive home means that your monthly mortgage payments will, in turn, be lower. If you are single or a young professional trying to start a family, that extra money can be a massive boost to your monthly budget.
Note that while your monthly mortgage payment may be lower, you are still responsible for other maintenance and upkeep fees. The most common is known as a homeowners’ association fee(HOA)/Assessments, to which all apartment owners in the same real estate development contribute. This funds upkeep of the building or property as well as things like landscaping, a pool or gym and other amenities.
A Smaller Down Payment
In the same vein, buying a less-expensive home also means that you can put a smaller down payment on it when you close the sale. In many cases you are required to place a certain percentage – typically 15-20 percent – down to get a loan with a good interest rate. Having to commit less in your down payment leaves more money for other purposes.
An Excellent Future Investment Property
Don’t forget that when you are ready to upgrade and move into a larger house, you can keep the apartment as a rental or investment property. Once your loan is paid off, you are only responsible for the monthly maintenance fees. So if you can rent the apartment out to a tenant, you will have an excellent source of cash flow that can help to pay for your new home or fund other activities.
The above are just a few of the many reasons why an apartment can be a great starter home for first-time buyers. To learn more about your options to buy your first apartment, contact us today. Our team is happy to provide the necessary information for you to make an informed decision .
Our professional team can assist you along the entire buying/selling/renting process. Please complete the contact form on winwin-properties.com to schedule a free initial consultation meeting to see if we are the right fit for you. If you are an NRI, please visit our website NRI-Property.com, designed specifically to meet the needs of NRI clients.