If you Can’t Afford to Buy Where You Want to Live

duplex

With today’s surging real estate prices, many potential home buyers are priced out of the market. They want to own a home but can’t afford to buy in their current neighborhood.

Maybe they don’t want to live anywhere else because their children are in great schools, or they are happy with their short commute to work. In some cases, there are up and coming neighborhoods close by, but the schools aren’t as good. Maybe you just don’t like the adjoining areas for any variety of reasons.

Don’t give up.

There is a way for you to get into the “game” so you can at least begin to build your net worth. The sooner you buy, the sooner you will have a buildup of equity which will get you closer to being able to afford your dream home.

There are a couple of solutions.

Have you considered buying a small multi-unit property? You can purchase a 2, 3, or 4-unit home, live in one of the units and rent the others. Since rents are so high these days, this could add substantially to your income. When you apply for the mortgage, the lender takes into consideration the rents you receive or will be receiving from any units that are vacant when you buy.

These multi-unit homes are in demand so be prepared to respond quickly if you find something you like.

The other option would be to buy an investment property in an entirely different neighborhood. Depending on your budget, this could be something as simple as an inexpensive condo, or even a single-family home 2-4 units. One word of caution regarding purchasing a condo as an investment. They have monthly homeowners’ dues which will cut into the rental income, so be certain the numbers make sense.

Think you can’t afford to buy? Think again.

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