Fears and Facts about buying your first home: Fear #5
A Keller Williams ® Realty Guide
By Gary Keller with Dave Jenks and Jay Papasan
Fear #5: I can’t afford to buy my dream home.
Fact: The best way to get closer to buying your dream home is to buy your first home.
Very few people can afford to but their dream home when they buy their first home. In fact, according to the National Association of REALTORS®, 69 percent of first-time home buyers in the United States compromised on some features of their first home. So you make some compromised, buy your first home, and start building equity. This approach takes you further and faster down the road to being able to own your dream home than if you hadn’t purchased a home at all.
Gary Keller and his wife Mary serve as a great example of how this works. They used their first home as a forced savings plan for their future dream home. They even made additional principal payments when they could to accelerate their equity buildup. Interestingly, this approach allowed them to pay off their first home in about eight years. Then, all that financial equity was available to help them build a second home – their dream home.
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