How to Buy Luxury Real Estate on a Shoestring Budget

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Cheap Homes for Sale in Florida and North Carolina

With some clever maneuvering and a little insight, it is possible to buy luxury real estate on a shoestring budget. If you’re looking for cheap homes for sale in Florida (Miami, Jacksonville and elsewhere) or in the Wilmington, North Carolina area, you’re in luck. This article can point you in the right direction. Let us count the ways to save money when buying your dream home:

  1. Location, location, location. Huffington Post ran an article, “10 Affordable Cities where Luxury Apartments are Within Your Reach.” Among the cities were Tulsa, Oklahoma, Detroit, Michigan, Huntsville, Alabama, Greensboro, North Carolina, Tucson, Arizona, Birmingham, Alabama, Indianapolis, Indiana, Phoenix, Arizona, Columbia, South Carolina, et al. The interesting thing is that prices to buy a luxury home are low in these cities as well, predominantly because of tough economic times. For the same reason, you can bump into a luxury home bargain in other locations in Florida and North Carolina on occasion – but be quick about it because investors are waiting to snap these up.
  2. Right along with the economic distress of a city is the economic distress of an individual homeowner. Occasionally, for a wide variety of reasons, a homeowner must sell his home in a “distress” sale. It must be done quickly to liquidate assets or avoid foreclosure. Again you must be quick to act on these opportunities when they are available.
  3. Bankruptcy and foreclosure sales are another way to buy a home for less than its normal market value. Even though it may seem you are “profiting” off of another person’s “trouble,” someone will buy the home if you don’t.
  4. Cheap Homes for Sale by Owner – or “FSBO’s” as they’re called in the real estate industry. You may find a homeowner who doesn’t realize the full potential of his home and is willing to sell it cheaper than if a real estate broker became involved. Occasionally, owners who are desperate to be rid of upkeep or mortgage payments may offer “seller financing” or otherwise be very flexible with terms.
  5. Fixer-Uppers. If you are willing to put in a little time, money and “elbow grease,” you can find a great bargain in luxury home fixer-uppers. These formerly beautiful homes fell into decline for any number of reasons – perhaps the death of the former owner or an elderly couple that was unable to keep up with maintenance. A USDA 203-K loan would allow you to finance both the purchase and construction / rehab of a home like this in certain instances. Ask your mortgage broker for more information.
  6. Cash offer – If you can come up with a lump sum cash offer or offer pre-approved funds to a buyer, it might make the difference of saving thousands of dollars in what you would pay for the house otherwise. Many times a seller will lean to the old proverb, “a bird in hand is better than three in the bush.”
  7. Government-owned homes – The Department of Housing and Urban Development (HUD) sells both residential and multifamily homes for several government agencies, including HUD, Department of Veterans Affairs, U.S. Customs, U.S. Marshall’s Service, U.S. Corps of Engineers, Department of Agriculture and Rural Development, FDIC and the IRS. Some of these properties would qualify as luxury homes and usually sell at bargain prices. View HUD’s lists of cheap homes for sale. All you need is financing to buy your dream home cheaper than some pay for a basic, plain house.
  8. Save literally thousands of dollars by buying real estate when interest rates are low – like now, for instance. Interest rates are still at a historic low. Monthly payments can be shaved by hundreds of dollars and you’ll save tens of thousands in interest over the life of the loan. Lower interest rates allow you to “more house” for less than if the interest rate were higher.

As you can see, there are many ways to find nice, cheap homes – or luxury real estate – even if you’re on a limited budget. Using one of these methods, you can buy a nice upscale home more cheaply or affordably than ever before and you don’t have to settle for substandard housing.

Additionally, there are many ways to buy a home with “no or low money down.” There is no reason for anyone who has a job or steady income not to own a home – even a luxury home. You’ll find “where there is a will, there is a way.” Ask your National Home Finance mortgage consultant to help you obtain financing and to give you more pointers on getting that dream home. Homeownership may be closer than you think!

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