Buying A Home – Does It Pay To Purchase A Home For Only A Few Years?

It’s not uncommon to hear many real estate professionals advise their clients to hold off purchasing a home 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.

However, let’s consider the consequences of postponing the purchase of a home. By waiting, you’re missing out on valuable money saving tax deductions each year. The real estate market can also take off driving home prices and loan rates beyond your reach. Over time, you could lose out on thousands of dollars in lost equity. While there are financial risks to buying a home short term, the potential loss of thousands in equity far outweigh the risks.

If your future plans include moving within a few years, your best strategy would be to develop a short term home buying strategy. Homebuyers who’ve taken advantage of short term ownership have reaped substantial financial gains in the relatively short time. The point to remember is, there’s never a bad time to purchase real estate. Irrespective of the local market conditions and interest rates, there are always homebuyers who can churn a profit in any market.

Despite the fact local real estate conditions and interest rates constantly fluctuate; sharp homebuyers continue to reap profits by flipping the right properties. If you have the talent for redecorating and repairing a home, you can significantly raise the resale value of a home. If remodeling work isn’t your cup of tea, you can also locate a handy person to do it for low cost.

Locating and renovating homes in need of repair isn’t the only effective way to reap substantial profits from the real estate market. You can turn a profit just from purchasing properties at bargain prices. Motivated Sellers, foreclosures, homes in probate, real estate owned (REOs) properties from banks who’ve repossessed homes from borrowers who’ve defaulted on their payments-all make great home buying opportunities.

Another effective technique to help you profit from short term ownership is utilizing lease options. By zeroing in on real estate and properties for rent with options to buy, you get the benefit of building positive credit, accruing a reserve of cash via rent credits to put towards a down payment, and the ability to get a seller to commit to a future predetermined sales price.

One additional benefit to using a lease option is the opportunity to walk away from buying a property (if home prices escalate) and locate another buyer willing to pay you for the option. The new buyer would benefit from your accumulation of rent credits and the opportunity to buy a home for less-than-market price.

Looking to find the best deal on a starter home? Then check out these Anaheim homes for sale and use a local Anaheim Realtors to help you find one.