Deals attract students to the idea of home ownership
Erica Tiffany
Not everything related to the economy should get people, especially young adults, down these days. The mass foreclosures of homes around the country has opened up an opportunity for first-time homebuyers like never before. No one knows when the value of homes will begin to rise again, but many are willing to gamble and purchase a home because of the unbelievable deals currently on the market.
Renting an apartment is the right option for some, and the mere thought of the maintenance and responsibility that comes along with a owning home can seem incredibly daunting.
There are condominiums and townhouses for sale where the home owners pay HOA fees, and the HOA takes care of maintenance. So for those who aren’t afraid of commitment, right now is the perfect time to buy a home.
Local real estate agent Greg Farr said that buyers can get into homes that sold a few years ago at the peak of the market for around $150,000, for as low as $50,000 today.
According to Farr, if people have good credit and are currently renting, they should seriously consider the pros and cons of making a leap into a fixer-upper.
Farr said that while the market is unpredictable, he thinks it is just about ready to hit the bottom.
“I just can’t see home prices going much lower than this,” Farr said.
“In my advice, it would be smart to purchase the ugliest house in a neighborhood, fix it up, and sell it in a few years for double what you paid. Even if you aren’t planning on settling in Arizona after school, you could sell the house in the future, and have money to purchase in a different location,” he added.
The foreclosure crisis is at the heart of the many economic problems the country is facing today, and the government has offered up to an $8,000 tax credit to first-time buyers, if they purchase before Dec. 1, 2009.
The government hopes that this incentive will get responsible people motivated to make a commitment to a residence, help stimulate the economy and get those foreclosed houses off of the bank’s hands.
Also, homes may seem out of reach to young adults, but the fact is, many of the homes popping up on the market today are extremely affordable.
According to Farr, the monthly mortgage on a home that is purchased for $60,000 would be loosely estimated at $400. That’s less than what many people pay in rent.
With interest rates unthinkably low, and moving lower everyday, it’s just another reason to look further into the idea of becoming a homeowner.
ASU student Kat Randall, who recently bought a house in Mesa, said, “It was the best investment I could have ever made. The first house I buy won’t be my last. The first house is never perfect, but it’s a start. This home will lead me to bigger and better things in the future.”
MCC student Ricky Cordova, who is currently house hunting, said, “I don’t get why more students aren’t buying houses. My girlfriend and I saved up for a down payment by putting in some extra hours at our jobs, and I will feel so accomplished when we have a place that we can call our own.”
Cordova also said that with so many homes coming onto the market everyday, house hunting and the whole process has been easier than he thought it would be.
“They need some sweat equity, but there are so many I could see myself living comfortably and happily in, and it amazes me that they are in my price range,” Cordova said.
