Being flexible could be your ticket to homeownership.
- Home prices have not come down in 2022.
- If you’re struggling to afford a place of your own, you may need to change your approach to buying or target a different type of home.
Many prospective home buyers were hoping property values would drop in 2022. But so far, that hasn’t happened. Since housing inventory is still low, home prices remain elevated, to the point where many buyers are getting priced out of the market.
If you’re hoping to buy a home this year but have limited funds to work with, you may need to get on board with the idea of changing your approach to the process. Here are four options that could make homeownership more attainable in the near term.
1. Buy a condo
With a condo, you’ll commonly get less space and privacy than you will with a standalone home. But you’ll probably pay a lot less, even when you factor in HOA fees, which are common when you own a condo. The result? A lower monthly mortgage payment to swing.
2. Purchase a townhouse
Like condos, townhouses tend to be smaller than standalone houses, and often, they come with limited private outdoor space. But on the flipside, you generally get more space with a townhouse than with a condo, and you might enjoy a small backyard or front lawn — an obvious perk if you have children.
Like condos, townhouses typically require you to pay dues to an HOA. But those dues should cover a lot of maintenance items you won’t have to pay for separately like you would with a standalone home, like lawn care and snow removal.
3. Buy a home with a family member
You may want to become a homeowner this year for the financial benefits involved. But if you can’t swing a home solo at today’s prices, consider partnering with a family member to purchase one. If you have a sibling who’s looking to buy as well, pooling your money could make it possible to purchase a nicer, larger place than what you’d manage to swing individually.
That said, buying a home with another buyer could open the door to a host of tricky situations. For example, who’s responsible for what maintenance? What happens if one of you can’t …….