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When you get over with the buying and moving in of the house, you start questioning your decision. These questions arise from looking at leaky pipelines and clogged rain gutters along with a few rodent problems. But it’s too late now. You’re stuck with the house and have to deal with it for a long time because of the depressed economy of the country.
Funny how the same economic depression led you to think that home buying would be a great idea even though you’re still stuck on issues like your credit card debt relief. Even though the interest rates may be low, the qualifications of becoming a potential buyer have gotten even more exacting. First of all, you need to have a solid proof of earning a sound income so that the seller would know whether you would be able to pay the mortgage or not.
Then there’s the substantial down payment that leaves your pockets a bit lighter. And if you don’t have contingency fun, then you can’t make any desired changes or renovations for a long time. At least until you save up enough funds again. There are a couple of points that you need to keep in mind when deciding on home buying in a depressed economy.
Among these points, the first one is resale. When you’ve bought a house with low interest, thinking that the price will go up in a couple of months then you’re simply delusional. As economic depressions take time to evolve into normalcy again, there is no telling of when the housing market will be up again. So guys or women who are recently divorced and are looking for a place to stay are advised to stay in places where they have to pay rents instead of mortgages. This is because as the divorce period takes its toll, you’ll be ending up with a big empty house on your hands.
Additionally, you will be left with nothing to do but make renovations with a company like Ideal Construction and pay the mortgages. Talking about the neighborhood, of course, everybody wants to live in a place with nice neighbors and a peaceful environment for their kids to grow up in. But sometimes, it may get a bit too peaceful as people would be moving away due to foreclosure and the same painstaking issues of dues unable to get any form of credit card debt relief.
Chances are that your neighborhood may be empty for quite some time as people won’t be able to qualify for strict credit score limits and sound income. Some of them won’t be able to pay the hefty down payments required by the sellers. You know you’ve made a bad investment when you’ve bought a home in a depressed economy because you won’t be able to sell it on its original price going into loss. One way or another, you’re stuck with the property and all because you failed to do your part on the investigation performed before every house sale or purchase.
When you decide on home buying in an economy that’s down and unlikely to get up for some while, here are some things that you should consider:
Hire an attorney.
A realtor may show you a nice place but the attorney will negotiate whether the property being sold is actually selling at its actual worth or his client i.e. you are simply being ripped off.
Check the neighborhood:
to see if it matches your lifestyle and see if you can blend in easily with your future neighbors. Tell your attorney to add an ‘inspection contingency’ clause in your agreement, allowing you to bring in your own quality inspector to find defects in the property (if any). This will give you the power to cancel the agreement.
Buying a crooked house that needs renovation could cost the same as buying a brand new one. So be careful on which investment you would like to make.