Real Estate in Worcester Ma. Sound Advice for New Buyers
As a Property Management Specialist in Leicester Ma, and knowing the Worcester County real estate market; I am in a great position to offer sound advice to my clients. I have found the dream of owing a home is still very viable, but sometimes it requires a well-thought-out plan.
Leaky faucets, noisy roommates and a neighborhood you don’t love might not sound like your cup of tea. However, the cheaper rent that comes under these conditions may well be worth it. Compromising on your dream apartment today can mean more secure housing in the future, not to mention a tremendous amount of financial savings. Here’s why cheaper rent, even if you don’t love your apartment, is a smart long-term financial move.
Paying cheaper rent now will save you money on your home purchase. If you are able to cut your rental costs significantly, you can put more of your income towards a down payment fund for a house. The larger the down payment you make, the less of the home purchase you have to put on a mortgage. This means you will pay significantly less in interest over your lifetime.
Taking a cheaper apartment for the short-term offers a second long-term financial advantage. By purchasing a home earlier in life, you will eliminate years of future rental payments. Rental rates will always creep steadily upwards, no matter how old you are or what your income is. If you don’t buy a home, you will have to pay rent every single month for the rest of your life. However, if you buy a home and pay off your mortgage well before you retire, your only housing costs as an older adult will be property tax and some maintenance. This is a good way to secure housing for the future, as your retirement income or savings may be limited.
When you consider the cost of rent over a lifetime, homeownership wins out financially. Anything you can do to buy your home and pay off your mortgage sooner is a smart move. There are a few more ways you can evaluate your housing decisions to achieve this goal.
Young people and recent college graduates may have the option to live at their parent’s home. Some young people live at home as their unemployment safety-net, but this arrangement is also a terrific option if you work at the same time. Like a bad apartment, living with mom and dad might not be your ideal housing situation, but it gives you the option to put your would-be rent money from a job into a savings account. In a few years, this will equal a sizable amount that can be used towards a down payment.
Seeking out less expensive cities and towns is another smart move to cut down on rental costs. Large cities like Boston are culturally vibrant, but there are plenty of other places throughout the area offering decent work opportunities, culture, and nightlife while offering cheaper housing. Settling in one of these locations will afford you cheaper rent for the next few years as well as cheaper home prices should you choose to buy in the area. Some rental areas outside of Worcester might not seem like the best choice, but towns such as Spencer offer a considerable savings over communities in Worcester and further east.
Compromising on your housing situation is a strategic move that can help you secure long-term housing for yourself and your family in the future. You may have to give up your ideal location, some square footage, and amenities, but it’s a worthwhile move for keeping a roof over your head long-term.