What would be considered the best investment for a first time homebuyer.?

Asked by beechbrat7, San Diego, CA Mon Nov 25, 2013

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21
Michael Green…, Agent, San Diego, CA
Wed Nov 27, 2013
What a great question Beechbrat7. One that I'm positive many buyers should think about when they're getting ready to purchase their first home. Now like many of my of the responders below, the answer to your question is all dependent on what your ultimate goal is when it comes to the investment purchase? Are you looking to purchase the home, live in it for however long, and then keep it in the future for investment income and appreciation? This is one of many great ways for a buyer/ owner to build a solid real estate portfolio and gain wealth in the long run.

Now this is just one option of many to take into consideration when it comes to your real estate portfolio if that's the path you want to take. I'm happy to speak with you over the phone or in person about your future real estate goals and we can make a plan of action to accomplish them. I specialized as a buyers agent with the #1 team in San Diego for the past 5 years, so I'm confident that I can assist you along the way to becoming a true successful real estate investment owner.

Last quick note, when it comes to getting a mortgage. I'm not typically a fan of the FHA loan only due to the fact that it comes with such a high mortgage insurance premium that not only hits you when you are at the closing table, but also while you're paying the loan monthly. I also don't believe you can refinance out of the FHA mortgage premium in the future unless you completely change loan programs. So this is something to take into consideration. Now if you have solid credit and can put down at least 5%, I would suggest you look into a conventional mortgage which doesn't have an upfront mortgage insurance premium at closing, just monthly, and the monthly premium is much less compared to an FHA loan from my experience. My suggestion is that you take the time to speak with a mortgage specialist and compare the two loan options side by side to see what would work best for you. If you don't have a mortgage specialist to speak to, let me know and I can refer you one.

I look forward to the opportunity to answer any further questions you might have. Have a great afternoon and safe and Happy Thanksgiving!!!

Michael Green
619-405-7974
http://www.MichaelGreenSD.com.
1 vote
Wayne L. Bro…, , San Diego, CA
Mon Nov 25, 2013
beechbrat7

That's a very open ended question as it depends upon both your short and long term goals that you have set for yourself.

I would recommend initially talking to two to three good lenders to first see what you might qualify for relative to purchasing real estate. Anyone of us who are experienced can ask and answer a number of questions that might help you in this area.

Part of the scenario will depend on whether you plan on living in the home, or just plain using it as a rental...as the down payment requirements will vary depending upon your goals.

Again, I would suggest starting by talking to a few lenders, some of which might be able to then refer you to a few good Realtors who can take over from our discussion.

I am local with many years of experience, and more than willing to assist you without any obligation or costs. All consultations are free.

Best of luck on your quest.

Wayne L. Brown
Mortgage Banker
SecurityNational Mortgage Company
Individual NMLS # 343946
Company NMLS # 3116
Direct: 858-997-6300
Email: wayne.brown@securitynational.com
Website: Wayne Brown
1 vote
Jeff Jenkel, Agent, San Diego, CA
Mon Nov 25, 2013
This question all depends on your lifestyle. Do you like to spend your weekends at the beach or would you rather have a yard and home improvement projects? Many first time buyers like to purchase a home where a little sweat equity will give them a large return. Others would rather buy a move in ready home, move in and continue on with their life. If you like to do yard work then purchasing a detached home might be a good choice, but if you don't have money in the budget for a landscaper and would rather be out doing things all weekend a condo or townhome might be a good option for you.

Something else to consider is if you are willing to have a roommate or two to compensate some of your mortgage expense to reduce your living cost.

Jeff Jenkel
http://www.jenkelteam.com
CalBRE#00874000
619-981-4000
1 vote
, ,
Mon Nov 25, 2013
Any sort of a home is a good investment given where the market is at now for a first time home buyer. You not only get a lower housing expense then renting but you get the added value of appreciation in home prices.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
1 vote
Anna M Brocco, Agent, Williston Park, NY
Mon Nov 25, 2013
Much depends on your budget, long term goals, wants, needs, lifestyle, etc., therefore work with an agent of your own, he/she will be your best guide; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
1 vote
Margaret Has…, Agent, Tampa, FL
Mon Nov 25, 2013
The best investment for a first time homebuyer would be to put 3.5% down using an FHA loan, to purchase a home priced so that your monthly payments are comfortable and affordable. You may qualify for 0% down loans, but you can talk with a lender about that. Good luck!

Margaret Hassani
Broker, Lightning Realty
Innovation and Experience
(813) 766-1501
Fax (813) 443-0118
zzmarg@gmail.com
http://www.LightningRealtyFL.com
1 vote
, ,
Sun Jan 5, 2014
It's a great time to buy and single family or multi-unit homes. For mortgage help, call or email for a free pre-approval in less than 10 minutes. We lend our own money and are licensed in 49 states and you can apply online at http://www.myccmtg.com.

We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (630) 639-1081.

Brad Neumann
Sr. Loan Officer
Crosscountry Mortgage Inc.
Phone: (630) 639-1081
Email: bneumann@myccmortgage.com
NMLS# 948036
0 votes
Media Fettin…, Agent, San Diego, CA
Thu Dec 19, 2013
Hello,

There are so many factors to consider. Where do you want to live? Do you want your home to be near work? Do you want a house or condo? What is your budget? Do you want a fixer or move-in ready property? Get in touch with me anytime if you need guidance as I'm more than happy to help. Happy Holidays!

Warm Regards,

Media Fettinger
Realtor
Century 21 Award
MFettinger@Century21Award.com
0 votes
JR Thrasher, Agent, San Diego, CA
Tue Nov 26, 2013
Buying a home...duh....lol

It all depends on your plans, one year, five years, ten years. Family, job, social life and affordability all play a factor.

I'll put a link in the web reference below for eight steps to buying your first home.

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
619-929-0105
0 votes
Chad Basinger, Agent, San Diego, CA
Tue Nov 26, 2013
Hi Beechbrat7,

This is one of those questions that I could literally write a book on as far as what is the best investment for a first time home buyer. First things first though and a huge congrats on taking the first step towards home ownership by asking the right questions and gathering as much quality information as you possibly can. Just be sure to know who you are asking as their answer could very well be skewed by self serving interests.

Now, back to your questions. There are so many ways to go about answering this. Strictly from a financial perspective, you'd ideally want to invest in a home where your monthly payment (principal, interest, taxes and insurance) is less than what the monthly rent would be. Of course, if you can buy a property for under "fair market value", then this will put you in an advantageous position right out of the gate. Other things to look out for include finding properties that have the potential to add value/make improvements and properties that are in up and coming neighborhoods. I'd also strongly encourage looking at the historical prices in various neighborhoods to see where prices have been and where they could possibly go.

I believe your question is really focused on the financial aspect of the home purchase, but I would also like to point out that it is a huge emotional investment. You/your family's safety, security, schooling, friends, et.al will all be affected by where you end up buying your first place. Thus, from this perspective, the best investment is one where you feel the most comfortable on all those fronts.

As noted from the get go, this question sparks an answer that would take too long to address on here. Should you care to discuss in greater detail or look into actual neighborhoods that may work best for you, please feel free to reach out.

Sincerely,

Chad Basinger, REALTOR®, CPA, CFP®
858-997-3704
Web Reference:  http://www.chadbasinger.com
0 votes
Cindy Davis, Agent, San Diego, CA
Tue Nov 26, 2013
There is no one answer will apply to all first time home buyers.

First and foremost, I would not approach your first time purchase as an investment. Presumably you were buying it as a place to live, transfer your rental dollars to home ownership, obtain the tax breaks from owning, and increase the stability of your home.

Whether you make a profit or not when you sell depends upon depends upon what price you buy at, and what you sell at. This is related to the timing of both events, and the market cycles we are in at the time.

If you stay in the home 5-0 years...the chances are you will make something back when you sell.

I've specialized in helping first time home buyers for over 10 years. I invite you to give me a call.

Cindy Davis, Broker
SD Home Source Realty
Phone: (619) 379-8616
Email: cindydavishomes@gmail.com
Web: http://www.1sandiegohomesales.com
CA DRE #01363537
0 votes
Cindy Davis, Agent, San Diego, CA
Tue Nov 26, 2013
There is no one answer will apply to all first time home buyers.

First and foremost, I would not approach your first time purchase as an investment. Presumably you were buying it as a place to live, transfer your rental dollars to home ownership, obtain the tax breaks from owning, and increase the stability of your home.

Whether you make a profit or not when you sell depends upon depends upon what price you buy at, and what you sell at. This is related to the timing of both events, and the market cycles we are in at the time.

If you stay in the home 5-0 years...the chances are you will make something back when you sell.

I've specialized in helping first time home buyers for over 10 years. I invite you to give me a call.

Cindy Davis, Broker
SD Home Source Realty
Phone: (619) 379-8616
Email: cindydavishomes@gmail.com
Web: http://www.1sandiegohomesales.com
CA DRE #01363537
0 votes
Melchor Perez, , Lake Forest, CA
Mon Nov 25, 2013
Hello beechbrat7,

First and foremost, thank you for posting a question here on trulia. As a first time homebuyer, you need to consider many aspects. When you get pre-approved, your interest rate will be different if you are going to live in it or not. Is it a long term or short term investment? If I can be of further assistance, please feel free to contact me by phone, email, or text. I am here to help you.

Sincerely,

Melchor Perez
BRE# 01842907
714-401-8879
REALTOR®
Star Real Estate South County
0 votes
Royce Kemp, Agent, San Diego, CA
Mon Nov 25, 2013
I don't have enough info to suggest what would be your best approach. There's no blanket answer, it depends on your goals, your personal situation, risk to tolerance, whether it will be owner-occupied or not, etc. There's no one size fits all and having a deeper conversation with a Realtor would be a good start.
0 votes
Cory La Scala, Agent, San Diego, CA
Mon Nov 25, 2013
Hi Beechbrat,

If you can, go with a detached home. They're easier to sell, and it it's in good condition, buyers won't be limited by the loan type they want to use. For example, a Veteran can't use his 0% down loan for a condo if the complex is not VA approved. If you do need to go with attached housing, try to find one with the comforts of a detached home, like in-unit laundry and a garage.

The area(s) you want to buy in, your finances, and your needs will dictate the type of home you end up with.

Don't hesitate to contact me for lender referrals or any information you'd like.

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
619-825-6421 Direct
619-884-3452 Cell
c.lascala@cox.net
Lic # 01443391
0 votes
Stef Seper, Agent, San Diego, CA
Mon Nov 25, 2013
Hi Beech,
Any place that would allow you to live in for the next 18 months or more, is the best investment for a first time homebuyer. It would allow you to stop paying rent - assuming you are - and help you build equity. Contact us if you need assistance,
Steve Seper, Broker / Owner
Balboa Park Realty, Lic #01730524
steve@balboaparkrealty.com
0 votes
Brian Aarest…, Agent, San Diego, CA
Mon Nov 25, 2013
I would go with a SFR coastal if you can qualify. Duplexes and units are hard to come by IMO.

Regards,

Brian Aarestad
Berkshire Hathaway Home Services
Cell: 858-525-3262
Fax: 619-521-0100
BRE # 01839557
baarestad@bhhscal.com

To simplify your home search, download my mobile real estate app here. http://app.bhhscalifornia.com/baarestad
0 votes
Jacques Albr…, Agent, Carlsbad, CA
Mon Nov 25, 2013
If this this a home for you to live in, then buy what you like and can qualify for. Should you be asking about an investment / income property and this is your first real estate adventure then consider purchasing a duplex. This way you'll be able to live in one and rent out the other until you can afford to move out and rent both units to income producing tenants.

Jacques Albrecht, GRI
Call | Text (585) 581-3700
Realty ONE Group
CalBRE Lic # 01332802
0 votes
Sinead McAll…, Agent, Oceanside, CA
Mon Nov 25, 2013
Hmmm, depends on what kind of investment you are going for? What will appreciate? What will give you the best rental return? Feel free to contact me with more information and I would be happy to help you.

Thanks!
​Sinead McAllister-Clifford
Real Estate Broker/ Realtor®

McAllister Homes Real Estate
Residential Sales & Property Management
http://www.McAllisterHomes.com
License 01366009
858-205-5215 CELL
info@mcallisterhomes.com EMAIL
0 votes
Kevin Sander…, Agent, San Diego, CA
Mon Nov 25, 2013
Hi there!
If you can afford a house, then buy a house. If you can't afford a house then buy a condo.
Buy something that you will live in so you will get a better interest rate. Put as much down as you can to keep your payments low. But, don't put so much down that you do not have money in savings.
What is the best investment? It matters less what you buy and matters more that you just buy and get in the game.

My first purchase was a 2 bedroom condo and I rented out the 2nd bedroom to a friend of mine.
You can do it!!

Here to help.
Kevin Sanderlin
Keller Williams Realty
Cell 858-212-4702
0 votes
Daniel Lehman, , San Diego County, CA
Mon Nov 25, 2013
Depends on the first time homebuyer... Not sure I understand the question... Single? Maybe look into buying a duplex or triplex where you can have "condo" living, but rental income and no HOA.

Married with Kids? Buy a Single Family Residence.

It just makes sense to buy. Period. Say your property NEVER increases in value. In 30 years of paying rent, at 1500 dollars per month, 540,000 of cash is flushed. Thats without any rental inflation, which does exist, so that is conservative.

HOWEVER, no matter what you buy, even if the property never increases in value, you have tax benefits, passive income if you want it, a home to give your kids, etc...

If you CAN buy, even if you have to stretch, I think you should. As long as you can pay for it, it will not be a bad investment. If you want to ask more specifically what you are looking for, I can speak more directly to your particular situation...

Thanks!

Daniel
0 votes
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