Boston condos for sale: Advice for first time home-buyers

Boston Condos for Sale and Apartments for Rent

Buying a home is exciting… until you start thinking about the down payment. That’s when the worry can set in.

“I’ll never save enough.”

“I need a small fortune just to get started.”

“I guess I’ll just rent forever.”

Sound familiar? You’re not alone. And you’re definitely not out of luck.

Here’s the thing: a lot of what you’ve heard about down payments just isn’t true. And once you know the facts, you might realize you’re a lot closer to owning a home than you think.

Let’s break it all down and bust some big down payment myths while we’re at it.

Myth 1: “I need to come up with a big down payment.”

This one stops a lot of people in their tracks. A recent poll from Morning Consult and NeighborWorks shows 70% of Americans think they need to put at least 10% down to buy a home. And 11% aren’t sure what’s required at all (see graph below):

The truth? According to the National Association of Realtors (NAR), the typical down payment for first-time buyers has been between 6% and 9% since 2018. But there’s more to the story. If you qualify for an FHA loan, you may only need to put 3.5% down. And VA loans typically don’t require a down payment at all. So, there are options out there that can really make a difference for some buyers.

Myth 2: “It’ll take forever to save up for a down payment.”

Sure, saving can take time. But it may not have to be as long as you think. In many states, reaching your goal can happen faster than you might expect, especially when you know your budget and have a clear savings plan.

According to a new study, the amount of time varies depending on where you live. The map below shows, on average, how many years it takes to save up for a 10% down payment based on typical home values and income levels in each state (see map below):

But remember, in most cases you won’t even need a down payment as large as 10%. Plus, no matter how much money you end up putting down, it won’t all have to come out of your pocket. Here’s why.

Myth 3: “I have to do it all on my own.”

This is one of the biggest myths of all. The reality is, there are thousands of down payment assistance programs out there, and the same poll from Morning Consult and NeighborWorks shows 39% of people don’t even know about them. That means a lot of potential homebuyers could already be closer to homeownership – they just don’t realize it.

These assistance programs are designed to help people like you who are ready to own a home but just need a little support getting started. As Miki Adams, President at CBC Mortgage Agency, explains:

“With high interest rates and soaring home prices, down payment assistance is more essential than ever.”

Bottom Line

If you’ve been putting off buying a home because the down payment feels like too much to tackle, talk to a local real estate agent. You may not need as much as you think, and there are plenty of resources out there, so you don’t have to do it alone. You just need an expert to point you in the right direction

Boston condos for sale: Advice for first time home-buyers

Having a hard time finding a first home that’s right for you and your wallet? Well, here’s a tip – think about condominiums, or condos for short.

They’re usually smaller than single-family homes, but that’s exactly why they can be easier on your budget. According to the latest data from the National Association of Realtors (NAR), condos are typically less expensive than single-family homes (see graph below):

So, if you’re comfortable with a smaller space and want to buy your first home this year, adding condos to your search might be easier on your wallet.

Besides giving you more options for your home search and maybe fitting your budget better, living in a condo has a bunch of other perks, too. According to Rocket Mortgage:

“From community living to walkable urban areas, condos are great options for first-time home buyers and people looking to enjoy homeownership without extensive upkeep.”

Let’s dive into a few of the draws of condos for first-time buyers from Bankrate:

They require less maintenance. Condos are great if you want to own your place but don’t want to mow the lawn, shovel snow, or fix the roof. Your real estate agent can help explain any associated fees and details for the condos you’re interested in.
They allow you to start building equity. When you buy a condo, you build equity and your net worth as you make your mortgage payments and as your condo’s value goes up over time.
They often come with added amenities. Your condo might come with access to amenities like a pool, dog park, or parking. And the best part? You don’t have to take care of any of them.
They provide you with a sense of community. Buying a condo means you’ll be living close to other people, which is nice if you enjoy having neighbors around and making friends. Many condo communities hold fun events like barbecues and parties during holidays for everyone to enjoy.

Remember, your first home doesn’t have to be the one you stay in forever. The important thing is to get your foot in the door as a homeowner so you can start to gain home equity. Later on, that equity can help you buy another place if you need something different.

Ultimately, owning and living in a condo is a lifestyle choice. And if it’s one that appeals to you, they could provide the added options you need in today’s market.

Boston Condos for Sale and the Bottom Line

It might be a good idea to think about condos in your home search. If you’re ready to see what’s out there, let’s get in touch today.

Peace be with you

Updated: Boston Real Estate Blog 2024

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Boston Condos for Sale and Rent

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Boston condos for sale: Advice for first time home-buyers

In the last week, I had three clients decide to start looking at Boston condo for sale again. They had put their home search on pause due to COVID-19.

If you have put your home search on pause and plan to continue it at some point it is important that you keep a current pre-approval letter handy.

According to Redfin more than 40% of houses on the market will get multiple offers the first day they are on the market. There isn’t a lot of time to get an updated pre-approval letter before the house is sold.

An offer without a pre-approval letter is like no offer at all.

Purchasing your first condo in downtown Boston is an exciting moment, but it is also a huge financial commitment. When buying a place, it’s vital to carefully consider every aspect, including the mortgage, the neighborhood, and the space itself.

Think About the Future

Consider how long you plan to stay in your place in your Boston downtown condo. If you plan to stay for some time, make sure it has the features you will need for the future, for instance, dual sinks, a large closet, a nice patio or balcony, a gym, and a pool. If you’re planning to keep it mostly as an investment to rent out, you don’t need to spring for some of the nicer amenities.

Search for Real Estate Grants

Depending on your profession and the location of your place, you may qualify for a grant to help pay for your downtown Boston condo. Some grants are available for specific professions including farmers, teachers, and police officers. Ask your downtown Boston real estate agent about supplemental funding options as well.

Look at the Condo Fees

Most downtown condos and high rise condos will be part of a Condominium Associations. Be sure to read the contract thoroughly before making your purchase and familiars yourself with the membership fees and any rules or restrictions created by the Condo Association. In downtown, condo fees usually start around $400 and can climb over $15000, adding a significant amount to your mortgage.

Have the Home Inspected

Having your potential new place inspected before purchasing is one of the most important steps of the process. Pay close attention during the inspection and make sure the inspector checks out the whole property.

Don’t Buy Furniture Immediately

The temptation to immediately buy all the furniture you need for your house will be strong, but spending a large amount of money on furniture right after paying the closing costs and the down payment can put you in a tight spot financially. Give yourself some time to settle in and rebuild your savings before heading out in search of the perfect couch.

Finding the perfect place can be challenging, especially in downtown Boston where it seems like your options are endless. If you need help finding the perfect place to call home, give us a call at 617-595-3712 and schedule an appointment.

Updated: Boston condo for sale website 2024

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