Boomtown -a town undergoing rapid growth thanks to recent prosperity.
It was not that long ago that we saw a migration of businesses moving operations overseas or across the border to Mexico due to the cost of running a business. Now, we’re seeing something similar with renters and homeowners.
Why Homebuyers Are Choosing New Boomtowns
The cost of living in cities like New York, Los Angeles, and Miami has risen astronomically. Anyone looking to buy their first home or upgrade to something bigger in these areas will find themselves in shock when they see how little their money can buy.
For example, in Los Angeles, it’s not unusual to find a tiny 650f sq ft apartment rent for $1500 a month –not including utilities. The cost of living in New Haven, CT is over 11% higher than the rest of the country.
How much does it cost a family of four to live comfortably in the Boston, MA area? Just about $9,500 a month!
Property taxes are one of the reasons that current homeowners are deciding to move out of higher-priced areas to these secondary boomtowns.
Republicans recently overhauled taxes in several states, which eliminated a lot of the tax benefits homeowners received. Without these benefits offsetting the higher-than-average mortgage, homeownership in these areas just doesn’t make sense.
Not Trading Down
On a positive note, homebuyers that are choosing these secondary boomtowns are not seeing it as a “trade down” from their ideal location. In fact, they see it as an improvement to their quality of life and even an opportunity to be part of the prosperity-building.
Secondary boomtowns such as Nashville, Sacramento, Tampa, and Austin have all the perks of big city life with family-oriented entertainment, trendy restaurants, art and culture, and career growth opportunities but with less traffic, competition, and cost.
Also, unlike higher-priced areas, most of these secondary boomtowns are dedicating more to residential development rather than commercial. The lower cost of living also gives homebuyers more options as to whether they want to buy in the city or in the suburbs right outside the city.
If you’re a current homeowner in a higher-priced area, it’s still a great time to sell and move! Despite the higher home prices and recent mortgage rate increase, these areas remain desirable and home sales have not slowed down by much.
Secondary boomtowns are experiencing rapid growth and we expect home prices are likely to follow. If you’ve been thinking about buying a home, now is the time! Contact Tara Mortgage Services today to get pre-approved fast and start your new year in a new home!
Join nearly 600 other real estate professionals in Alex Deacon’s Real Estate Networking Workshop group on MeetUp.com! Click below!
Alex Deacon Real Estate Networking Workshops
Carnegie, PA 589Members
Learn investing from a local expert with a vast amount of experience in the Pittsburgh market. Alex started investing in 1993. We will review hands on examples, analysis, and …
“Am I ready to buy a house, or should I just keep renting?”
It’s one of the questions that we hear most often and something to which first-time homebuyers often spend months, if not years, trying to figure out the answer.
Below are a list of four tell-tale signs that you’re ready to bite the bullet and take the leap into home ownership:
Sign #1: You’re ready to settle down
The first sign that you’re in the right mindset to become a homeowner is that you’re ready to stay put — at least for a little while.
Conventional wisdom states that in order for your purchase to make financial sense, you’ll want to plan on staying put for at least the next five years. When you sit down to think about house hunting, you’ll want to use that timeframe as your reference point.
Ask yourself the following questions:
Can you see yourself staying at your job for that long, or will you be looking for new opportunities?
If the right position came along, would you be willing to move for it?
Do you like the area you’re living in, or would you like to explore other options?
Do you see your living situation changing soon?
Are you planning on moving in with a significant other or expanding your family?
If these questions make you squirmy, the idea of looking five years into the future still feels a little too far ahead for you to grasp, or you still want to see where life life takes you, you may want to consider renting for a bit longer or thinking about a for-a-few-years home vs. a forever home.
2. You’re done living paycheck-to-paycheck
Let’s face it, becoming a homeowner is expensive.
Not only is there a monthly mortgage mortgage payment to consider, which will likely be more than your current rent check, but prospective homebuyers need to be prepared to come up with a sizable down payment, shoulder a portion of the closing costs, and have the dough to take care of any necessary repairs.
Luckily, there is a way that you can prepare for the added financial pressure before the big day comes and understand how much house you can afford. Use a mortgage calculator to estimate what a monthly payment could based on the type of home you’re looking to buy. Then, subtract the amount you pay in rent each month, and aim to put the the remainder into savings.
Start by working towards a down payment that could be worth 3%-10% of a home’s sale price, and then move onto a seperate emergency fund.
3. You’re ready for more responsibility
Once you find a home and actually buy it, that’s really where all the fun begins.
Yes, owning a home means that you have a lot more freedom to improve the property as you see fit — whether that means putting in an entirely new kitchen or redoing the hardwood floors.
However, in addition to that creative freedom comes an added layer of responsibility. As the homeowner, you’re the one who is responsible for any necessary maintenance and upkeep on the property.
Think about what you’re like as a tenant now.
Are you willing to roll up your sleeves and help with small tasks or are you relieved to know that you have someone to call? If you’re less handy, you may want to take some time to familiarize yourself with common home maintenance tasks before committing to buying anything. It always helps to have a fair idea of what you’re getting into.
4. You know what you’re looking for
Last but not least, though it may sound self-explanatory, when you’re trying to determine whether or not you’re ready to buy a home, it’s useful to have an idea of what you’re looking for.
You don’t have to have every single detail set in stone. (In fact, it’s preferable if you leave some room to flexibility in your home search.) That said, though, having a basic set of parameters in mind will make the homebuying process go much easier.
Here, you’ll want to think about the most important factors that you absolutely must have in a home. These will be the things that you would not feel comfortable buying a home without. This may include details like your preferred location, an ideal number of bedrooms and bathrooms, a target sale price, or any specific must-have features like that perfect picture window view.
If you have a strong idea of your must-haves and can’t see that changing in the near future, and the above signs sound like you, you may just be ready to take the plunge into home ownership. If not, there’s no shame in the game waiting.
Don’t miss the final Alex Deacon Real Estate Workshop of 2018!!! We’ve opened up the room for extra seating due to our growing attendance. Click below to connect with Alex on MeetUp.com, network with nearly 600 other Real Estate Professionals, and RSVP to the November workshop!
Virtual Bus Tour of Current and past rehabs
Saturday, Nov 10, 2018, 10:00 AM
Hampton Inn Bridgeville 150 Old Pond Rd Bridgeville, pa
28 Members Attending
We have done a few actual bus tours in the past but with the strong turnout I dont like to have to turn down folks due to the high volume of requests. Our next workshop in November we will do a virtual tour of some current and past projects and show you where to spend your money wisely and where you can and cant cut corners in order to stay profita…