When To Buy A House
I get this question all the time from people wanting to own their own home, When is the best time to buy a house? The answer is simple. The best time to buy a house is when it’s on sale. And right now, in many areas, real estate is on sale.
Real estate is cyclical. It goes up and it goes down. The key to be buying when the prices are low and selling when the prices are high. The challenge sometimes is knowing when or how to tell when we’ve reached those points. There will always be great deals no matter what the market conditions look like. There will always be someone motivated to sell.
Right now is a great time to buy a house. Interest rates are low, and will eventually rise. Home prices are low too and we’re starting to see a small increase in value. So for anyone looking to buy a house at the perfect time, now is a good time to lock in a great deal and get a good interest rate.
When buying a home, there are several things you need to look for. You need to look at the neighborhood or location, the resell value, price and terms.
It’s important, especially for first time home buyers to have a good experience when purchasing a new home. Location is very important. Remember, the average time a home buyer stays in a home is 7 years. So, at some point in time, you too will move. So keep this in mind when you buy a home. You want to be located in a good area that is not considered a war zone. A local real estate agent call help you to know what zip codes are safe and have low crime.
You want to make sure your home has good curb appeal. Unless of course you are buying a fixer upper, to create the good curb appeal. As long as it has good curb appeal potential, you will be fine. There are just some houses that no matter what you try to do to them, they will never look good, unless it’s given a complete face lift which can be extremely expensive.
Price is also a big deal. We’ve seen what happens to people who over-leverage themselves and get into something they can’t afford. Do not make this mistake. Get into something that fits your needs and that you can afford. It’s not worth the risk of losing a home just to look good for the family and friends. That’s what happened this last go-round and millions were affected. Bit off more than they could chew and couldn’t make the payments anymore. Couldn’t sell either because they leveraged the house to the hilt.
There are all sorts of terms when getting a mortgage. 30 year fixed, 15 year fixed, adjustable rate, etc. If the rates are low, why not lock it in long term so you know exactly what your payments are each month. Try to get the lowest interest rate possible and if you have extra each month after putting some into savings and paying off all your other debts, start paying off the home. Adding just a few hundred dollars each month towards principal, shaves of years of payments.
So the best time to buy a house is when you are ready. The signals to buy home are right now.
Now, if you plan on investing in real estate, there is a little more to it. And that’s my passion and what I love to teach.