Buying a home for the first time is a very important step in a person’s life. Deciding what city your home will be in is a huge part of that decision-making process. There are plenty of good places that first-time homebuyers can choose to live, but there are also some cities that are not such good options.
Bankrate studies of 50 metropolitan areas show the best places in America for people buying their homes for the first time. The locations were decided based on wellness, affordability, safety, employment, and the tightness of the market. Out of those 50 metro areas, Los Angeles, California, was last on this list because its average income for homeowners was so low. Another problem with homes in Los Angeles is that the price is often very high. The number one city on this list is Pittsburgh, Pennsylvania, because even though its average income is about the same as Los Angeles, the housing market in Pittsburgh is much tighter.
According to those studies from Bankrate, the top ten cities that rank as the worst places for first-time homebuyers to live are San Diego for the tenth number place, Orlando, Florida, San-Francisco, Houston, Denver, San Jose, California, Riverside, California, Seattle, Las Vegas, and in the number one spot in Los Angeles. One of the most noticeable things about this list of cities that are the worst places to purchase a home is that so many of these cities are in California. Another noticeable thing is that each city in California ranks at the bottom as far as affordability goes.
Despite what this list shows, some of those cities that rank at the top of the worst may still have some good qualities. Los Angeles has a high ranking for wellness and culture despite its low ranking for jobs and affordability, so it is possible that some first-time homebuyers could find those advantages to be more appealing. Several of the other cities on this list may have similar advantages that make them more appealing as well. It is very important for first-time homebuyers to do their own research to choose a home in a location that really feels right to them.
In 2006, real estate was a hot area for investment in many parts of the country. Prices went up, and credit was easy. Liar loans and mortgages with adjustable rates allowed people to buy more homes than they could afford. Then, the market crashed. Foreclosures increased rapidly, and many people found themselves underwater with their loans. They owed more than their homes were worth. There is a real fear that American real estate is in another bubble. This is why it’s important to be proactive in protecting yourself from the possibility the bubble will burst.
Don’t Buy What A Bank Offers
Most realtors will want to see pre-approval for a loan that shows how much a buyer can borrow. It’s not a good idea to search for a home at the maximum loan amount. Buying a house at a lower cost will make the monthly payments easier to make.
Put Money Down
Some government programs allow people to buy a home with no money down. Others, like the FHA loan, require a mere 3.5% down. This is a dangerous loan if the market collapses. Coming to closing with a 10% or 20% down payment provides instant equity and makes it less likely that you’ll wind up underwater with your home mortgage.
Situations change unexpectedly, but those who plan to move within five years should avoid buying a home. Because most of the payments go to interest in the early years of a loan, equity will be difficult to build in the short run. Closing costs and realtor commissions can come with financial stress. Therefore, unless you plan to stick around for at least five years, renting is usually a better option.
Have An Emergency Fund
Having some money stashed away is a great stress reliever. That money can also go toward paying down a home that winds up underwater during a housing bubble. Most experts recommend having three to six months of expenses available. An emergency fund can alleviate the need to use home equity or a credit card for an unexpected expense.
Housing bubbles can lead to higher rates of foreclosure. They can also erode the wealth of many households. Taking these steps before purchasing a house can make it less likely that a family will be hurt badly if a housing bubble bursts.
Airbnb has had a huge impact on travel accommodations, and those who have chosen to stay in an Airbnb may wonder if hosting an Airbnb rental is a good investment. Becoming an Airbnb host is appealing in several ways, including the ability to add to your income without being an expert in real estate. However, hosting an Airbnb may not be right for everyone because there are some disadvantages to it as well. It is important for potential Airbnb hosts to research and learn if hosting an Airbnb will be a good decision and investment for their life.
The first thing potential Airbnb hosts should learn is the difference between an Airbnb and traditional investment property. Airbnb rentals are short-term with several different renters over time, and traditional investment properties are for tenants who plan to stay for a very long time, even years or decades in some cases. The next thing potential Airbnb hosts should do is research the market to find out if any outside circumstances are causing it to change, such as the recent COVID-19 pandemic. The pandemic had a huge impact on the Airbnb industry by creating quite a decline in customers in 2020. However, there has been a recent surge in Airbnb customers who are becoming more comfortable with the pandemic, trying to find ways to stay safe and have a fun vacation at the same time. Those people find comfort in an Airbnb that is located in a travel destination place that is both secluded and desirable.
Potential Airbnb hosts must also consider the legalities and expenses that come with renting out an Airbnb, including maintenance, furnishing the property, extra amenities like Internet and entertainment subscription services, utility bills, home insurance, and specific Airbnb laws in each state. On the upside, it is possible for someone to have an Airbnb almost anywhere since many people use Airbnb for business and events that could take them anywhere in the country instead of just the standard vacation spots that were once the norm. If potential Airbnb hosts price their rental correctly and does their best to make their rental appealing to potential tenants, an Airbnb can be a very smart investment income.
A legislative process, zoning allows the government to divide a property into different zones for different uses. These laws regulate the construction and use of structures on the property. Zoning laws are important to determine whether the types of structures that can be built on a property are compatible with its surroundings. They also determine if an existing structure can be repurposed or if a new one can be built. Understanding the various aspects of zoning is important to ensure that the necessary changes are made to improve the appearance and function of the property. Even if these aren’t changes to your property, your neighbors might try to make these changes and, consequently, negatively affect your property.
To protect the health, safety, and general welfare of the people, zoning laws are designed to ensure that the use of land doesn’t affect the people in negative ways. They also try to minimize the impacts of land use on the people by separating incompatible uses and ensuring that the properties’ value is protected. Developing a comprehensive land-use policy allows for the orderly development of the city. Aside from protecting the health, safety, and general welfare of the people, zoning laws also ensure that the city has adequate public infrastructure.
Cities are generally focused on developing industry as a way to stimulate economic growth as well as developing areas for residential use. However, if the two are developed side-by-side, this can cause upset amongst residents. This is the task of zoning, a process imposed by the government that aims to make both parties happy.
The goal of zoning is to create a set of rules that will allow the community to develop a compatible and sustainable use for their land. After considering the various factors that affect the development of the city, it then divides the city into multiple districts. These laws then regulate the use of structures within each district, as well as the types of buildings that can be built within each zone. Because of the law’s recognition that life is not always black and white, zoning laws can also provide the government with the flexibility to accommodate the changes in the city’s development. Although it’s possible to decide for yourself what type of project you want to develop, given the varying jurisdictions of the city and the complexity of the laws, it’s important to consider taking the advice of a knowledgeable individual.
It’s a great time to be an agent in the real estate industry. Multiple markets across the country are experiencing strong growth. The average number of houses on the market is decreasing, and list prices are rising. Despite the uncertainty surrounding the stock market, the residential real estate sector is still resilient. Even if you’re a top producer in your region, there are still areas that you can improve and people who can help you reach your goals and improve your marketing efforts. To take your real estate practice to the next level, here are the top 5 TED talks to improve your expertise in real estate.
“Never Split The Difference” by Chris Voss
In real estate, an agent is likely aware that every aspect of a deal is negotiable. Some of these include the price you can expect to receive, the length of time a seller has to sell their property, and the commission split. In this video, Chris Voss, a former FBI negotiator, discusses the various techniques that the agency uses to help its agents successfully negotiate. He also notes that one’s last impression between parties can significantly influence the outcome of a deal and leave a lasting impression of you. Although negotiation skills are commonly beneficial for other business people, they are very important for real estate agents as the profession is predicated on being a negotiator. This is because acting as a mediator is a requirement in order to get the best possible deal for their clients.
“Grit: The Power of Passion and Perseverance” by Angela Lee Duckworth
Without the necessary grit, you’re going to have a hard time making it in the real estate industry. Even if you have the necessary sales skills, you’re going to receive more no’s than yesses during your first few years. In her video, Angela Lee Duckworth, a former corporate consultant who left her job to pursue her passion for teaching math in New York City, talks about the importance of persistence and how it can help agents succeed in their endeavors.
“The Four-Letter Code to Selling Anything” by Derek Thompson
The ability to sell is critical to your success in the real estate industry. Besides selling properties, it’s also important that you can effectively communicate with buyers and sell yourself. This process involves understanding the pain points of each individual and how to approach those issues to connect with the client. Derek Thompson, an editor at The Atlantic, will help you sell anything that you can think of.
“The Skill of Self Confidence” by Dr. Ivan Joseph
On the surface, real estate agents have different backgrounds, educational attainments, and interests. However, when it comes to being successful in the industry, the best agents are known to have a passion for their work and exude self-confidence. As the athletic director of the Varsity Soccer team at Toronto’s Ryerson University, Dr. Joseph often gets asked what skills he’s looking for in his recruits. In his talk, he discusses the importance of self-confidence and how it can help people succeed in their lives.
“How to Spot a Liar” by Pamela Meyer
As a real estate agent, you’re likely to run into unethical and dishonest people. We are lied to anywhere from 10 to 100 times a day. In her book, “Liespotting,” Pamela Meyer talks about the various ways people are trained to spot deception. She argues that honesty is a valuable trait that people should work to protect. It’s important to note that plenty of people will try to bend the truth in order to get the best possible deal for their clients. If you’re not able to spot the signs of an unethical or dishonest agent, you could end up losing money and putting your reputation at risk. In her talk, Pamela Meyer discusses the various ways that real estate agents can protect themselves from being exposed to a potential fraudster.