How do you know if its a great time to buy a home? When you have a great job? When your credit score is really high? When you have a family? Do you really want the new responsibility of owning a home?
Can you do some home repairs? What happens if that roof starts to leak? You going to be able to go up their and fix that leak or it could really destroy your house. You won’t be able to call that land lord and have him come over to fix all the problems. Its going to be up to you to figure out what to do.
You are really going to need to think this whole process out. Besides the things that will need to be fixed. Their will all so be the requirement now for a down payment in order to get the home loan. Their will all so be the problem of figuring out what your monthly payment are going to be. This will need to be one of the first things to figure out.
A rule of thumb is that it rarely makes sense to buy if you expect to move within two years. That’s because when you do sell, there are costs associated with selling. We’re not just talking about sales commissions to the buying and selling real estate brokers.
Most owners rely on home appreciation to pay those costs and to provide the down payment and closing costs when they buy their next home. So buying a home when you expect to move before too long is a risk, especially in an uncertain market.
However, most buyers live in their new home an average of seven years or more. If that fits you, it almost always makes sense to buy rather than rent, in practically any market.
Why? First, if you are thinking about delaying a purchase because you want to “time the market” to get the very best deal, that is almost impossible to do with precision. Even if you are in an area with declining market prices, the most knowledgeable experts cannot reliably anticipate the “bottom” of a real estate market.
Their is really know way to predict what the market is going to do in the future. Some people like to say that the market has always rebounded in just a few years. the problem is no one knows if we are at the bottom yet. Or when the rebound is going to be.
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