Getting into real estate can be tough, but tough isn’t much to Joseph Pingaro. The Boston-based entrepreneur has had a tumultuous career and has faced roadblocks that he’s triumphed over. As someone who’s been involved with the real estate industry for several decades, we sat down with Pingaro to see what we could pick up from his market view.
Where The Market Currently Stands
When searching for a home, Pingaro notes that intensive research about the market comes first. Whether you’re looking to buy locally or invest in property elsewhere, the process remains the same: be patient, calculated, and progressive with your forecasting. Furthermore, Pingaro also relays that it’s important not to pull the trigger on something without seeing it first.
“Even if a correction in the market is coming, it’s still a smart time to buy…especially in the warmer season. Confidence in the market always comes around the time when people are more mobile, especially parents who are changing cities for a job,” states Pingaro.
As noted by the National Association of Realtors, existing-home sales rebounded in May and are up 2.5 percent. While personal property purchases might slow closer to the fall and winter, Pingaro also thinks right now is a good time to start doing your research if you’re looking to move by next summer.
Rehabbing Can Help You Get Thrifty
Most recently, Pingaro wrote on advice for rehabbing a home, which includes quite a few helpful tidbits. He points out that if you’re a first-time homebuyer, rehabbing a home can be a great way to not only save money but also get more of a return on your investment. By utilizing historic tax credits, homebuyers can often get a sizeable amount back on their federal, state, or even local taxes. However, not only have these rules seen some adjustments on a federal level, but they also can be tricky to maneuver around with homeowner associations and local zoning laws as well.
A primary piece of advice from Pingaro is when rehabbing, always have a licensed contractor that you can trust through the process from start to finish. We have a contractor as an afterthought, once we’ve decided on a home, but it’s important to bring them along to help with estimates. Pingaro also notes the changes happening with tax credits; according to the Architectural Research Group, these are 20 percent for homes listed on the National Registry of Historic Places, or 10 percent for the rehab of non-historic, non-residential buildings built before 1936. That criteria can be somewhat difficult to navigate on your own, which is why bringing an expert is always a safe bet.
This Is A Patient Person’s Game
Buying any piece of property is going to take time. In fact, the average time to close on a home is 45 days, and it can be a pretty nerve-racking process. With how much Pingaro has been through in his lifetime, overcoming these mental roadblocks is something he understands.
“The trick is remembering that even if you don’t like the situation right now, that doesn’t mean you hate your whole life. Patience is all about having faith in the future…and in real estate, you’ve got to be ready to take a ride from the long-haul.”
When asked about what to do when feeling anxious or depressed, his advice was to get out and be active. Since depression can create brain fog, it’s important to get out of the house and get some fresh air.
Always Anticipate More Savings Than Just The Down Payment
“It’s hard to say ‘no’ to your dream home, which is why so many homeowners refuse to wait.”
As risky as it can be, Joseph Pingaro speaks the truth. There’s a big difference between what can be afforded versus what you have in the bank. When buying a home, the biggest financial barrier most people consider is the down payment; however, there’s more that goes into it. Homeowner association fees, unexpected renovation costs, property taxes, and even brokerage fees should be considered, as well as keeping a nest for any incidentals.
According to SmartAsset, while it’s recommended that the average downpayment is around 20 percent, the average homeowner usually puts down 6 percent or less.
Pingaro notes that it comes down to how much you’re willing to pay upfront: “There’s a little wiggle room if it’s really your dream home. A lot of times I see people put down a smaller downpayment for a house they really love at hopes of refinancing later.” This isn’t a bad idea if you’re able to build equity against your home and improve your credit.
However, Pingaro warns that even if you do want to put down a larger down payment, be mindful not to become house poor–where all your money immediately gets sucked into the home. “It’s a bad place to be, which is why you’ve got to hedge your bet. No one can make a house a home if it’s stressed from the start.”
If you’d like to learn more from Joseph Pingaro, you can follow his advice on Facebook and Twitter. What are some takeaways you got from Pingaro’s advice? Comment with your insights below!