It’s not uncommon to hear many Tustin real estate professionals advise their clients to hold off viewing and purchasing Tustin homes for sale unless they plan to live in it for at least 4 to 5 years. This advice may sound logical since commission and other closing costs can deduct a major portion of your equity if it hasn’t appreciated substantially.
But let’s consider the downside of waiting to buy a home. When you procrastinate getting into the real estate market, you run the risk of home prices and mortgage rates spiraling beyond your ability to qualify for a home. Plus, you’re letting valuable tax deductions slip through your hands each year you continue to rent. If you consider the wealth building potential of owning a home and the thousands of dollars in equity you could be passing up, you’d be foolish to ignore the opportunity of searching Tustin homes for sale to buy one.
If your future life goals include relocating within four years, try working on a short term ownership plan. Some savvy homebuyers can flip through several properties within a short time and earn substantial profits along the way. It’s important to understand you can’t go wrong purchasing a house-assuming you approach the process intelligently. Although the real estate market and loan interest rates oscillate up and down, you’ll always find smart investors earning considerable equity through short term ownership.
One major strategy to turn a profit is to purchase homes in need of repair. If you’re handy with redecorating and remodeling work, you can add thousands of dollars to the value of a home. If you’re not handy with house repairs, you can also find an inexpensive subcontractor to complete the work.
Investing in fixer uppers aren’t the only way to profit from the Tustin real estate market. Many homebuyers have utilized other creative means to build their profits. Some examples of profitable short term ownership strategies include locating sellers desperate to sell, probate sales, foreclosure sales, and REOs (real estate owned) when the mortgage bank takes back property after the home owner fails to make their agreed upon payments.
For some homebuyers, one of the best short term buying strategies is a lease option. If you take advantage of renting with the option of purchase a property, you can build your credit, save cash toward a down payment with your rent credits, and lock in the purchase price against future inflation of housing prices.
One important feature of lease options overlooked by many homebuyers is the ability to not exercise their purchase option should the real estate market spiral upward-but find another interested homebuyer to pay them for the option. The new buyer would reap the benefits of any accrued rent credits and have the chance to buy a home below existing market price.
If you’re looking at Tustin Realtors and real estate agents to help your find the best Tustin real estate and homes for sale, give me a call today!
Comments on this entry are closed.