You’re sick of renting and it’s becoming expensive. You’re looking around and finding so many people are purchasing a co-op, condo or house.
You’re thinking, maybe it’s your moment to consider buying, too.
So the first step would be to begin seeking out a referral to a lending institution to provide you a pre-qualification or commitment letter.
You will need two years of tax returns, or if self-employed you will need to be in business for at least two years and provide your 1099 forms and tax returns, also for two years. You will need two to four weeks of your pay stubs, ID with photo, and information on all debts (credit cards, installment loans, mortgages or any other types of liabilities).
With that in hand, you begin your search for an experienced, knowledgeable, credible and straight-shooting broker or salesperson to assist you in your journey to find your home. You will begin your search either with a referral from a friend or business associate or, as many are doing, going online, to locate a Realtor.
You find several and interview them, settling on one or possibly two; because working and feeling comfortable with more than two agents, can become unnecessary, if you vet and interview the agents properly.
Even exclusive listings can be shown by any Realtor by state law, and he or she can represent you as a buyer’s agent.
Remember, for most, this will potentially be the most expensive purchase of your lifetime; so you want to have the most experienced and qualified person to assist you: a broker or salesperson who will listen twice as much as he talks (two ears and one mouth) and fully understands your specific needs and wants based on your budget, towns you would consider, type of property to purchase, bedrooms, baths and condition and most importantly, your timeline for moving in.
Now you are armed and somewhat prepared with what you need to go to battle in this crazy high-demand, low-inventory, historic 40-year-low-interest-rate market.
You’re looking for yourself, with your sweetheart, girlfriend or wife and you’re finally going to pull the trigger and buy something, so you can now be your own landlord and gain the tax benefits, appreciation and freedom of owning.
It also eliminates the fear of having to move when your landlord doesn’t renew your lease, because he sees the excellent market we are currently experiencing and decides to sell.
Another reason, you have a disagreement about your dog, cat, smells from cooking or noise from music or your parties, and don’t want to pay any more increases. Or more devastating, he or she tells you, “my kids are moving back home and I will not be renewing your lease.”
Whatever the reasons, it is still a pain to have to find another rental, with potentially higher prices, and packing up everything while working your job or business.
The stress of it all can be overwhelming, and with your tendency to procrastinate you start to feel your blood pressure rising from the day-to-day grind of looking for and finding another place to live.
The scary realization that you must move very soon is starting to give you palpatations.
However, all of a sudden, you have an epiphany, making a decision to never have to give a dime to any landlord ever again.
You have the money – by the way, you can use money from any retirement plan to buy your first primary residence without penalty and you can do this every two years – and the thought of owning something is becoming a more positive reality and you are starting to get excited. Are you single, bringing up your family, starting one or maybe just a five-year plan and then possibly moving up to a larger space or lastly, just moving out of state, due to the high cost of housing and taxes? Many more people are leaving New York than are moving into the state. In certain towns and locations, one must have much deeper pockets than average, as do many professionals across the Long Island area who are employed in the medical, legal or financial professions. However, the typical home in the U.S. is now selling for $225,000. As we know, in a good to superior area with above average schools in Long Island, you couldn’t buy a piece of land, let alone a home for that amount of money. So it’s survival of the financial fittest.
Yes, it is rough out there, but if you put your mind to work the money can be earned; it all depends on how motivated you are to change your financial situation and if you are willing to go back to school and learn a different trade part time.
As I always say, “If you keep doing the same thing, expecting different results” you are in the business insanity syndrome. But, more important, look at someone who is doing what you do, five years longer than you. Get used to it, that is exactly what you will be doing. So if you don’t like what you see, what are you going to do about it?
The money is here in Long Island. You just have to make a greater concerted and committed effort to gain more knowledge, put in more time, apply what you have learned and bend down, where you will find the money. Unfortunately, 35 percent of the people are renters. That can change, if those individuals do something about it. Then you will be in a position to go out and buy your next place to call home!
Philip A. Raices is the owner of Turn Key Real Estate @ 7 Bond St in Great Neck. He can be reached by email: Phil@TurnkeyRealEstate.Com or by cell (516) 647-4289 to answer any of your questions. To search for any type of properties or to see what your home is worth or homes that have sold in your area, go to WWW.Li-RealEstate.Com or if you desire a free, no obligation CMA (Comparable Market Analysis) for the value of your home, call me.