If you are thinking about purchasing a home right now, you are surely getting a lot of advice. And some of that advice is probably negative. Why buy now with prices still falling? Don’t you realize real estate is no longer a good investment? Don’t you know that people who bought six years ago lost their shirt? I understand the concern your friends and family have. However, let’s look at whether or not now is actually the perfect time to buy a home.
There are three questions you should ask before purchasing in today’s market:
1. What are the experts recommending?
In the last 120 days, many experts have said that buying now makes sense. This list includes:
John Talbott,
Christopher Thornberg and
Warren Buffett.
2. When will I begin to see appreciation if I buy now?
This is a great question. The experts are predicting prices to remain relatively flat in 2012. They are then projecting prices to rise gradually with recovery appreciation up to 1% per year. This is also variable based on the market and type of housing you are buying. Always talk with a professional Realtor regarding what you are looking for, and how this fits into the big picture. Of course, housing isn't always a tool for investment ~ it's a necessity to meet your needs. But ~ if you can plan smart, it can be both when you are flexible.
Purchasing a home today makes great sense from a financial standpoint. Think of the old axiom:
you want to buy low and sell high. This decision should not only be a financial one however.
That leads us to our third and final question:
3. Why am I buying a home in the first place?
This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. The
Fannie Mae National Housing Survey shows that the four major reasons people buy a home have nothing to do with money:
- A good place to raise children and for them to get a good education
- A place where you and your family feel safe
- More space for you and your family
- Control of the space
What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the reason you decide to purchase or not.
Bottom Line
Plan smart with a professional Realtor so you can make the right decision for you and your family. In the long run, the finances will work in your favor.
