Someone recently asked what I thought millennials should do to prepare for buying their first home.
Millennials are all about being prepared and doing their due diligence; they research, they plan, they come with great questions and often times spreadsheets. They're usually the clients that contact us several months ahead of time to get the ball rolling, as they enjoy developing a solid strategy well before they're ready to move. This often works out to their advantage; those that begin preparing in advance typically have a leg up on the competition once they're ready to get into the market.
Whether you're a millennial or not, here are my less than obvious ways in which you can save tons of money on your next home- these are the things that buyers (even the super savvy ones) don't usually think about.
Each point below is an overview of what's to come in the weeks ahead. To dive into each topic, subscribe to our blog and you’ll get more in depth posts on these topics in the coming weeks.
- Save $40K+. When choosing which neighborhoods you may want to live in, figure out which neighborhoods are up and coming. In Madison, buying a home in the already super hip neighborhood can cost you $40,000+ more than a similar home in the up and coming neighborhood across the street. To save a boatload of money on your next home, think about buying a home like you would think about buying a stock.
- Save $30K+. If you like free money, learn about your local municipality’s financial incentives for buyers looking to renovate properties. Many municipalities offer TIFs (Tax Increment Financing) to buyers looking to purchase & renovate homes in certain areas (and NO, you DO NOT need to do the work yourself to come out ahead!) In Madison WI, a buyer can utilize an $80K TIF to renovate a single family home which is completely forgiven once the renovation work has been completed. Currently, there are TIFS in two of Madison's most desirable near east & near west neighborhoods.
- Earn $10,000+ of equity (almost) instantly. Why do you think flippers make tens of thousands of dollars per flip? Is it because they’re smarter than you? Are they more skilled than you? No & no. Sure, while some flippers do some or all of the work themselves, many don’t- they just make the initial investment, oversee the project and cash in on their foresight months later. So what’s their secret? How can you think like a flipper to realize that instant equity yourself?
Interested in hearing more on any of these topics? If so, subscribe to our blog to learn how buying strategically is like making the next jackpot stock pick. Have questions? Give us a shout.