Everyone’s bucket list will have a dream house. It is considered one of the biggest accomplishments. Be it a simple home or a bungalow, each of us hopes to find a home that is uniquely designed for us. For some people buying a new house is a difficult task. They assume that buying a dream house is far beyond their imagination. To overcome this, the government has been taking steps to help people with less expensive houses. Before you buy a house, look for financial needs, taxes, market value and so on.
How Much Money You Need?
When it comes to buying a house, many people immediately jump into getting a loan. If you are about to get a loan you have to look into certain factors like taxes, pre-paid insurance, the origination fee which has to be paid to the lender and a few other costs. You can also ask the seller to lower the cost by choosing the loan which has smaller down payment. There is an important factor to be noted down – a loan will be sanctioned only if you have a decent salary. As an alternative, if you hold property in Texas, you can look for buyers who make good offers, which are tagged with the catchline – we buy houses Austin TX.
Choose A House Below Market Value
Most of you will not be able to buy your dream house in the very first attempt. It takes time, patience and hard work to earn a decent income and then buy a house of your dreams. Buying your dream house can be easily achieved if there is a lot of money. But if you are a person who earns averagely, then go for houses that are below market value. Houses that are of below market value needs more work to be done, or in some scenarios, the seller will not be willing to sell them quickly.
Pay Less or No Tax
One of the greatest benefits for the house owners in the US is that they need not pay capital gain tax if you are about to sell your home. To qualify for the tax, you have to reside in the house for about 2- 5 years. As you were residing in the house, its value would have raised or, you would have even made improvements in the interior. If you are an owner and leave the house within 5 years, then you won’t be paying the taxes. Also, you will notice that the value of the house will be increased. And simultaneously you would have even paid off your loans.
Is It A Good Idea To Invest All Your Money In A Dream House
Don’t invest all your money in getting a dream house. Instead, buy a house below market value and start investing them in rental properties. At times, unexpected things can happen like, the price of the houses may decrease instead of increasing when you invest in buying houses. So in such cases, its good to avoid buying houses that are most expensive and choose the ones which you can qualify for.