Is Right Now the Right Time to Buy?
Is Right Now the Right Time to Buy?
There are several reasons you should and should not buy a home. When considering such a major purchase, it's important to take the time to properly think it out and understand the buying process. Our checklist of reasons to buy and not to buy is a great place to start figuring out which decision is right for you.
Reasons to Buy
Consider buying if you...
Reasons You Shouldn't Buy
Don't buy if you...
Do You Have a Secure Job?
An important indicator that you may be ready to buy a home is having a secure job. Solid personal financials can both help you secure a loan and continue to afford your new home for years to come.
When you're renting, if you have financial problems you have more options. It's easier to downsize to something more affordable by simply moving at the end of your lease. You also have the possibility of negotiating an early termination of your lease, whereas with a mortgage that is not an option.
Building Wealth Matters to You
Renting a home or apartment builds wealth, but it builds it for someone else. When you're ready to begin building wealth for yourself, purchasing a home to live in is a great start. Home's appreciate in value, on average at a rate of 2% to 3% annually in the U.S. Additionally, your payments (at least in part) go toward building equity in the property, and the interest you pay is tax deductible.
Feelings Matter
It shouldn't be understated the importance of feeling ready to buy a home. Having the confidence to take the financial plunge into the responsibility and long-term commitment of home ownership. There is a pride in the accomplishment of home ownership, and an opportunity to improve your financial standing, but a lot of work as well. Feeling confident you're ready for everything involved in buying and tending your first property is just as important as any other purchasing consideration.
Don't Let Someone Pressure You
Friends and family can sometimes offer great advice, but at the end of the day if they pressure you to buy a home you're not ready for it isn't them stuck paying the note. 'Is right now the right time to buy' is a question with potentially life-changing opportunity, and sometimes not always for your good. Be smart, and buy only if it makes sense to you.
Buying a Home isn't a Short-Term Option
While your first home may not be your forever home, it should be purchased with at least a somewhat long-term stay in mind. Home buying includes one-time costs like lender fees and realtor fees that don't make sense to incur if you're going to turn right back around and sell the home quickly. This kind of quick turnaround in home buying can result in losing money, sometimes a lot of money.
Don't Buy When Drowning in Debt
Debt can undermine the benefits of buying your first home. Heavy debt loads can put you at greater risk of being unable to meet the financial obligations that come with home ownership. If this happens, you may face foreclosure or simply be unable to keep up with your home's maintenance which would allow it to fall into a state of disrepair. Take the time to budget and improve your financial situation and reduce your debt load before adding a mortgage on top of it.
Unsure if You're Ready to Buy?
If you're wondering if right now is the right time to buy a house, but you aren't quite sure, you can talk it out with one of our experts. Our team includes both licensed realtors and accountants who can discuss the current real estate market and help you figure out your budget.
