Nothing in the world gives people more security and comfort than having their own home. Of course, that is only true if the mortgage payments are reasonable for the owner. The recession in 2008 and the record number of foreclosures that followed were due, in part, to the predatory lending practices of some mortgage providers and the willingness of certain buyers to purchase more than they could afford. This was a red flag to many potential home owners that never wanted to be put in that position. Buying a home outright may seem impossible, but there are people who manage this task even when living on a middle-class income. Here are some ways to make this dream a reality.
Share the Home
Consider purchasing a home with a family member or close friend. People that could never imagine saving $100,000 to put towards a home may find that saving $50,000 is achievable. A multi-unit home will allow everyone to have their own private space, and in some areas these residences are more affordable than single family homes.
Buy in Stages
Consider purchasing an available, unimproved building lot with cash. Continue with the process to clear the land and build the home as money becomes available. Once the land is cleared and leveled it may be possible, depending on local zoning laws, to install an inexpensive, older mobile home on the property. This will eliminate rental costs and make it easier to have money for the construction of the home.
Buy a Project
Old homes, fire-damaged properties and auctioned foreclosures are frequently available for a tiny percentage of what people pay for other homes in the area. It may mean living in a couple of rooms while the remainder of the house is improved or even living elsewhere. However, people with building skills and the desire to put in the effort can take a damaged, run-down property and turn it into a beautiful family home.
Make a Trade
Consider starting small and working up. For example, purchase with cash a small, older RV to live in while it is improved and upgraded. Once done, sell it for a profit and use the cash to purchase an older mobile home. Do the same with the mobile home until it is possible to buy a small, stick-built house or cottage. This is not for everyone because it takes time, DIY skills and some patience, but it does eliminate the need to pay rent while the work is completed.
Buying a home with cash may seem impossible to some people, but it can become a reality if they remain organized and stick with their plan. In 2013 approximately 60 percent of all homes were being bought with cash. Some of these sales were to investors with the money to spare, but not all. The effort is worth it for anyone that wants real security even when the job market is unsteady. If you have questions about real estate prices, you might consider visiting a business like Jed Gwynn LLC.