The DTI ratio is one of the most important ratios there is when it comes for qualifying for a co-op or getting a loan from the bank. This simple equation is often done wrong or over looked until after an offer is made. In the video above Alexander Fazelani explains what is a DTI and how to calculate it.
How To Save To Buy A Home in Your 20s
In recent years, the average age of first-time home buyers has become lower and lower. With interest rates at record length lows, and more awareness being built around financial literacy and wealth building, we decided to share a few tips for those of you in your 20s looking to own real estate.
Regardless of your annual income, it is very possible to strategize and save enough money to become a home owner – which opens the doors to becoming a real estate investor!
In this video Queens, NY Real Estate Broker Alexander Fazelani breaks down 5 strategic ways to begin building wealth through real estate in your 20's - a time when many of us are not necessarily at the income bracket we hope to be in to consider purchasing a home.
Looking to purchase a home in the next 3 months to 24 months? View homes for sale today and familiarize yourself with the market! As always, we are here to be a resource for you and your network. Feel free to call us at 347-707-3098 or 917-915-4417 (or email info@iarealtygroup.com) with your real estate questions. We’re happy to help!
Pros and Cons of Buying a Starter Home
When it comes to saving a down payment for a home most people struggle to come up with the funds. It requires a lot of discipline and dedication.
Some may wonder what's the purpose of saving for a starter home when I can just save up long term for my main house. This is a financial decision we must make for ourselves. The term "different strokes for different folks" does apply here. So here are a couple of pros and cons to buying the starter home.
CON: BUY TWICE, MOVE TWICE
The most obvious reason someone might try to skip the starter home is to avoid buying twice and moving twice. There are many fees and closing costs one has to pay; such as, mortgage insurance, home insurance, loan fees.
To think about going through the process twice scares people. This is the importance of having a good real estate broker and supportive team if you decide to begin with a starter home.
PRO: BUILD STABILITY
With homeownership comes a lot of responsibility and life lessons. You will make decisions and face new circumstances as a home owner.
You now can choose the cosmetic changes of your property. You are able to host, and take pride in the ownership aspect of your home. You might see yourself as joining a larger community.
CON: YOU MIGHT SPEND MORE THAN YOU PLAN
So, you will need to furnish your new place and buy curtains. You will have to landscape and take care of the yard.
Likely you will want to paint and refinish the floors. Hiring a contractor can be scary and expensive when it comes to your first projects. It's important to use someone you trust. Some who has experience.
TIP: Make major improvements over time. It's wise to move at a slower pace for your first home.
PRO: EQUITY IS KEY
The best part about buying a starter home is building equity. Queens and Brooklyn are hot markets if you are planning to commit to an area for 5-7 years. You are going to build up some equity – possibly a substantial amount. Values of homes are going through the roof and are on a steady rise. You will also be building in the value of the home.
It's wise to consult with your real estate professional to understand the trends and if it is the best time to buy in your market.
CON: IT'S A MAJOR COMMITMENT
We live in a new generation where people are getting married later, growing families later and staying single longer. If you are not commiting to an area for at least 5-7 years it would be wise not to purchase a home unless you are doing it for investment purposes.
If you are still iffy about moving into Queens or Brooklyn it's wise to know the area and culture before committing.
IT'S COMPLETELY UP TO YOU!
If you play your cards right, you can possibly make and save a huge sum of money in equity.
The starter home buying process is the most stressful because everything is new and scary. If it's a path you want to go on then follow these tips:
TIPS FOR SUCCESS:
-Find a good realtor (someone who knows the market you are in and can run comps for every potential good investment)
-Think fix me upper
-Be committed to your purpose and wants.
-Find the right contractor and fix as you go.
If you do decide to go with a starter home we wish you luck on your wealth building journey! If you have any questions regarding the process feel free to reach out to us at info@iarealtygroup.com
5 Ways to Avoid Driving Your Realtor® Insane
Not all agents are made equally. Not all agents will be great at what they do. So it’s important to find one with a great reputation and someone who holds their business to a high standard.
SO, YOU FOUND ONE? That’s awesome; I hope your agent is treating your family with the highest level of loyalty and respect.
Like any professional relationship it’s important to be on the same page. So this is how you avoid driving your agent insane.
Being Untrust Worthy. Price Swapping.
Most buyers don’t really pay for a realtor’s time. Some buyers unintentionally or intentionally put themselves and their agents into compromising situations. If you agree to work with an agent, it is wise to stay in communication with your agent. It is important to be upfront about your intentions. Are you not looking to work with one agent? Are you looking to find a place yourself?
One huge issue that can cause major issues is price swapping. Attempting to negotiate a deal behind your agents back is a big no-no! It not only will cause potential issues legally, but it might cause you to lose the property and sometimes lead to legal issues. So, don’t do it.
Making Unjustified Lowball Offers.
So, you walk into a fully renovated house marketed at $600k. You put in an offer for $400k just to see what the owners say. The real estate business is a business based on building relationships. There is nothing more insulting to a potential seller or agent than constantly low-balling.
It is in your best interest to be strategic, but you must be realistic and realize that you get no where by insulting someone's biggest asset.
Unrealistic Expectations During Showings.
Demanding loads of unrealistic attention early on is a sure fire way burn a bridge with a realtor who is only trying to help you.
It’s important to educate yourself on the market. Viewing houses is not going to necessarily mean you are ready to purchase. You may be 1-2 years away from actually being ready. You shouldn’t demand so much time from a realtor if you are just looking around. Realtors are not tour guides. They are “home purchasing” consultants.
Indecisiveness
One moment you want a condo, then you want a co-op. Then you read an article and decide to buy a house. Then you realize you can't really afford the upkeep of a house and decide to go back to a co-op. Any good realtor will help you come up with a game plan – before showing your properties . Lay out all your options and help you figure out your budget.
LOOKING TO BUY A HOME IN QUEENS?
So, the next time your not sure how to proceed just ask your trusted realtor. Transparancy is the best form of business. You wouldn’t tell a doctor how to do your surgery? A good professional deserves your respect and loyalty as well.
