Here is Number 4---
Buy Right
I am not suggesting that you constantly defer gratification and that you always pinch pennies. This isn't just an unpleasant way to lead your life. It can also be shortsighted, especially when it comes to possibly the biggest financial decision you ever make: buying a home.
If you are purchasing a house in an area where you foresee staying for a long time, consider stretching to buy the home you really want, even if it is a little more expensive than you can truly afford. The fact is, trading up is enormously expensive, so your best bet is to buy the right house the first time around.
I think Jonathan is being a bit simplistic here. If you are a first time home buyer you are already, I believe, going to be "stretching to buy the home you really want." Because if you are like me you want the best value for the "home you really want" and value usually means something is already expensive. This is never more true than in housing. If you have any questions about that, book a trip to San Francisco.
The most overworked cliche about housing is "Location, location, location." But true.
So find your house based on the following criteria--the property must maintain or increase in value as a result of good schools, good location (there's that word again) and demand. And that spot will be expensive.
There is no time in your life when you need to be more financially sharp, innovative, and cut throat. Cut throat in the sense to bargain and find bargains.
The strategy for doing this is already laid out in Category 9--Buying A House For 30% Off. Read it, develop your own strategy, and implement. Any questions, just let me know.
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