Buying A Cheap House

I have seen it happen time and time again. People who have jobs in a large city but cannot afford to live there. They want a cheap house in a rural area and they intend to commute. What many people don't realize is that by not living closer to their places of businesses, they may be costing themselves quite a bit of money in commuting costs. With the prices of gas fluctuating, it is not uncommon to see your gas costs double for the month. People go out of their way to save a few hundred dollars a month on a mortgage but will spend that same amount on gas. By buying a cheap house that is over 30 minutes away from their work, they think that they are making their life easier. That fact may not always hold true.

Granted, if you work in a very ritzy area where houses cost more than you could dream of, it makes sense to look for a cheap house. If you are looking for a cheap house because you cannot afford an additional $500 a month, you may want to crunch some numbers. If you're spending a few hundred dollars on gas each month, you could perhaps look at getting a nicer house and cutting down on transportation costs. A cheap house is ideal if you're purchasing it for the right reasons.

The best way to find and purchase a cheap house is to look at foreclosures. You might be able to get a decent house for a very low cost. I tend to shy away from foreclosures and advise my clients to do the same. Every once in a while you do get an excellent bargain from someone else's misfortunes. More often than not, foreclosures are not the best of houses. I tend to see quite a few that need some major renovations or repairs done. Think about it - if the previous owners didn't care enough to make their payments, they most likely didn't care about their homes very much. I've seen people get a cheap house for an excellent price but spend thousands of dollars in fixing it up. By the time they are finished, they probably could have gotten a house for the same amount of money they just invested and spent without going through all of the labor. People are just drawn to the idea of a cheap house though. Not all foreclosures are that bad. Sometimes, you want a cheap house and find a foreclosure that is in great
shape. The odds are very rare though.

The best way to find a cheap house is to just do your research. A cheap house isn't just going to knock on your door and say, "Here I am!" You need to find it. Get a real estate agent who knows what to look for. Know your budget. Remember that what you see as a cheap house, others may not. Also keep in mind that you get what you pay for. If you find a cheap house, it just may end up having some problems or need some work. On the other hand, any work that you do on your cheap house can end up turning it into a more expensive house.