Robert Q Lee

Buying your first home is as scary as it is exciting. A lot of responsibility goes along with that purchase, so it’s a good idea to learn as much as possible as you go through the process. As ready as you think you are for such a big responsibility, take a moment to browse through the following list of mistakes you should try to avoid.

Financial Preparedness

As a young person, you may feel you’re financially ready to take on the responsibility of homeownership, even if your bank account says otherwise. This is likely to be the biggest purchase you’ll make in your lifetime, so you mustn’t make an impulse decision.

To make sure you’re financially ready, ensure you’re not just buying a house because all your friends are doing it and that you have an emergency fund set up to cover the cost of unexpected situations. If you can pay yourown closing costs, have money set aside for taxes and insurance, and you have enough money to pay for any move-in repairs that need to be made, you’re probably financially ready to buy a house.

Hire A Real Estate Agent

While the Internet makes it easy for anyone to shop and purchase a home, it doesn’t mean you should go it alone. Hiring a real estate agent will help you find the perfect home as well as to navigate the complicated waters of the home buying process. Furthermore, you’ll likely get a better deal with an agent by your side.

Don’t Make Decisions Solely On Price

It’s likely you’re shopping for a home within a budget, but price shouldn’t be the only factor when deciding on a home. If you choose a home based solely on price, you may miss out on other vital factors such as a safe neighborhood or the proximity of nearby conveniences. Be sure to look at several factors when searching for your first home.

Get Pre-approved

You can certainly look for a home without getting pre-approved for a mortgage, but not knowing how much home you can afford beforehand can cause you to waste time looking at homes you can’t afford. Furthermore, without a pre-approved mortgage, you could set your heart on a particular home that the bank won’t fund because it’s out of your price range.

Don’t Skip The Home Inspection

Many real estate agents are good at staging a home to make you think it is perfect. You may be tempted to forgo the home inspection based on the appearance of the home, but it’s important to keep in mind that many of the issues in a home aren’t readily visible. Only a trained home inspector will be able to uncover and identify issues such as mold, water damage, etc.

The home inspection should be a non-negotiable part of the home buying process.

Buying a home is an exciting time, especially when you’re young. If you’re buying your first home, be sure to keep the tips listed above in mind as you shop so you avoid some of the more common mistakes young homebuyers make.

As the oldest millennials begin their careers, and the youngest ones are just graduating high school, they will be making important decisions about their finances. They will question their spending and saving habits, and some will delve into investing.

For those young people interested in real estate investing, we’ve compiled a short list of lessons every millennial real estate investor should know. We feel these lessons are critical to your success and hope they help you navigate the challenging waters of real estate investing.

Lesson 1: Be Genuine And Have Integrity

In case you aren’t sure what it means to have integrity, we’ll tell you.

Having integrity means you act the same in public as you do in private.

You may think your private life is completely separate from your work/public life, but the reality is, at least a little bit of who you are in private leaks through to your public life. For example, if you constantly drop the F-bomb at home, it’s likely there are minute pauses in your speech at work (where the F-bombs would have been) that ultimately cause your colleagues and clients to mistrust you just a little bit.

Be a man or woman of integrity so others see you as a genuine person.

Lesson 2: Build A Network With Your Personal Touch

Anyone can build a network using digital media these days, but if you hope to be successful, you must build a network of people you like serving and truly care about. You do this by making a list right now of the people who will answer and return your calls. Then, you add one name a week of someone you’ve met and connected with. In order for this to work, you must take the time to speak with people in person. After all, humans were designed to be social. We need each other, so put your phone away and make real connections with others to build your network.

Lesson 3: Learn To Communicate Effectively

Once you’ve amassed your network, you need to learn how to communicate with them. To do this, find a great book with prose you would like to sound like. Read it aloud three times a week for 30 minutes. That’s it. By the end of a 10-week period, you’ll be speaking differently. Your speech will be clear and concise, and you’ll be confident in what you’re saying.

Lesson 4: Be Willing To Admit When You’re Wrong

We’re all human, and we all make mistakes. It’s these mistakes, however, that make us likable and relatable. It’s a fact that people who brag a lot tend to be seen as untrustworthy by others. When you make mistakes and are willing to admit to them, others see you as genuine and honest. Don’t be afraid to admit your defeats because we all have them.

As an investor, you’re always looking for the next big opportunity. For many savvy real estate investors, this means buying properties near college campuses. While this may sound like a bigger risk than reward, there are actually some really good reasons to buy and then rent properties in college areas. Check them out!

You Don’t Have to Work So Hard to Market Your Property

The sheer nature of a college town sells itself. With high walkability ratings, these towns are full of restaurants, entertainment, and shopping. Finding renters in a college town is really easy because there’s always an abundance of people hoping to find housing close to the school and all the activity.

There’s No Shortage of Potential Renters

Many students relocate when they enter college. A good majority of them come from far away, which means they need somewhere to live while they attend school. Renting is the obvious option since most of these students will either return home or move away after graduation. Even if a renter moves out of your unit, there’s always another waiting to move in immediately.

Aside from the student body, there’s also the school’s staff and faculty, as well as graduate students. While many of these people are longer-term residents, they may still prefer to rent rather than buy.

You Can Maintain Competitive Rental Rates

Because there’s such a high demand to live in the area, you can set and maintain competitive rental rates that keep up with the going market value.

Vacancy Rates are Low

Renting in a college area is a balancing act because vacancy rates tend to climb during the summer months when students return home for the break. You can avoid this pitfall of renting to college students by making them sign a year-long lease. This obligates your renters to year-round occupancy, so you don’t have to worry about vacancies during the offseason.

The Risks of Buying Property in a College Town

As with any investment, there are risks to be aware of when buying property in a college town.

College Students are Notorious forCausing Property Damage

While renting in a college town has many benefits, no landlord is immune to the property damage college students almost always cause while living in a rental unit. You can offset this damage by factoring it into the security deposit you require when they sign a lease.

You May Have to Dedicate More Time to Finding Renters

College students move around a lot, so you may have to spend more time looking for new renters than you would in another area. The good news is, there’s usually no shortage of prospective tenants waiting to rent your property.

It Can Be Difficult Finding Renters for the Summer Months

As stated before, summertime tends to result in more vacancies as students return home for the break. Having tenants sign a year-long lease solves the problem of seasonal vacancies in a college area.

College Students Can Be Demanding

Because they’ve never lived away from home before, college students tend to have a lot of questions and be quite demanding when it comes to needing something. It’s easiest if you live nearby so you can address their needs quickly, or if you can’t live nearby, hire a reputable management company to handle all the landlord responsibilities in your place.

If you’re an investor looking to increase your earning potential, consider buying rental property in college areas. While there are some risks involved, there are ways around them to make investing in college town real estate a smart move.