In today’s volatile real estate market, the decision to buy or rent is a very critical question being asked by many prospective homebuyers trying to achieve the dream of home ownership. Before considering taking the plunge into house ownership and getting out of the renting scenario, there are a few things to consider. There are obvious advantages of home ownership over renting, of course, in which home ownership includes equity development, tax advantages, and the security of ensuring the lease will not end, as long as you pay your mortgage.Click Island Coast Mortgage near me for more details
Nearly everybody wants to own a piece of real estate at some point in their lives and that’s more pronounced here in Hawaii where real estate is scarce since we are on an island. Land is costly, and limited space. There’s no construction out in the suburbs like other major cities do. The suburbs are 10 miles west to the coast of Kapolei, Ewa Beach and the Waianae. There may have been a time when a young adult could save 20 percent for an down payment and buy a small home out of college a couple of years, but in today’s real estate market in Honolulu, 20 percent is about 2-3 years ‘ wage for young people beginning their career. The most popular real estate option for Hawaiian youth is to get a couple of friends to rent a condo, townhouse or apartment together. The idea of buying a home is a far distant fantasy reserved for “when they start to make good money” Unfortunately with the high living costs of Hawaii (outside of real estate) is also high so the rental cycle continues much longer than expected.
Home ownership in Hawaii has really become the dream and can be difficult to realize unless some very tough decisions are made by the soon-to-be homeowner. The first thing is to make the decision to buy real estate and focus on developing a strategy in a clear and practical time frame to do just that.
The first thing to do is to evaluate the current financial picture including all sources of income and all outgoing expenses. A perfect way to track spending and expenditures is to get 3-month receipts for everything and keep all of them in one place. Go through all of them and bring them into specific categories so that you know where your money goes. This will give you a clear financial picture so you can continue your plan to save, save, save for that perfect piece of real estate in Hawaii.
The next thing to do is speak with your lender about pre-qualifying for a mortgage. The credit officer or mortgage broker will give you an idea of what you can apply as far as the amount of the loan. Although in recent years we have seen an increase of 100 per cent funding options, 10-20 per cent down payment is suggested. This would help if you were to find quick sales need. You’ll be less likely to be upside-down on your mortgage, preventing a short sale or foreclosure.
It is time to start looking for your dream home or at least your first move to your dream home which might be a dream apartment, once you have your down payment plus closing costs associated with loan closing costs and escrow closing costs.