The Truth About Home Buying MythsAll my Sons of Antonio found an interesting article on MSN talking about myths that are typically related with buying a home. The article lists the home buying myths one by one and reveals the truth about the topic with the help of real estate experts. Continue reading this article for some of the highlights. And remember, if you’re moving within the San Antonio area or New Braunfels, Seguin and Boerne, the local San Antonio movers are your best choice because we are professional, reliable and have a solid reputation.
The first myth listed on MSN is the one that says buying a home is better then renting. This is something we’ve all heard before, but now because of the whole economic situation and the mortgage meltdown, the attitudes towards home buying are changing. MSN reports that in a recent survey done by Fannie Mae, they found that 23% of renters are postponing their plans to buy a home. Another reason home buying might not better than renting are the repairs and maintenance the come with a home, not only are homeowners responsible for the work they’re also responsible for the payments of these repairs and upgrades. Things to think about are leaking roofs and water pipes, landscaping, electrical problems and more.
The second myth listed is that a home is a great investment. We’ve heard that ‘real estate is the path to wealth’ for a long time, it’s ingrained in most people’s mind. His might have been true at one point in time, but today the return on real estate investment is not that measurable anymore. Your money might be better of in stocks. Nationally, home prices have fallen about 33% since 2006 so the investment on a home isn’t what it used to be. According to one blogger who did the math of comparing stocks against real estate investments, he says stocks have rewarded people with 7% over inflation with a financial writer saying the same.
Another myth debunked is the bigger down payment is always better. Home buyers are typically told to put the most money they can as a down payment. The reasoning for this is that they’ll borrow less money from the bank meaning they will spend less money over time on interest and lower their monthly mortgage. Home buyers also don’t have to buy mortgage insurance if they put 20% or more of a down payment. The other benefit to a bigger down payment is that there’s more equity in the house, meaning less money you owe when you pay off your mortgage. However a smaller down payment mixed with the required mortgage insurance can be a great idea for many people who don’t have a big down payment to place. You might be able to get a smaller interest rate because banks feel safer with insured loans. You money won’t be tied up in one house, you can have other investments and diversify into stocks, bonds or mutual funds. You can always make additional payments later on, adding to your equity.
If you find a home you’re interested to buy, consider all these myths and find out what works best for you. And if you need help with professional moving services or locating professional grade moving boxes, just contact All My Sons of San Antonio.