Is this a good time to buy a home?
Buying a home if you expect to sell it within two years is a risk, especially in an uncertain market, because there are quite steep costs associated with selling.
But most buyers live in their new home for an average of five years or more and if that fits you, it almost always makes sense to buy rather than rent, in practically any market, says Berry Everitt, MD of the Chas Everitt International property group.
There are various reasons for this, the first being that 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 the most knowledgeable experts cannot reliably anticipate the bottom of a real estate market, he says.
Secondly, if you aren't an owner, you're a renter, which means that you are giving whatever you spend on housing to someone else, with no long-term benefit to yourself.
Writing in the Property Signposts newsletter, Everitt says that the third reason to buy as soon as you can is that the easiest way to accumulate wealth is through home ownership. Three out of four homeowners have more equity in their home than assets in retirement funds, stocks and savings.
He acknowledges that there are some areas that had more rapid appreciation in recent years and may suffer from lower price-growth than the rest of the country or region over the next couple of years.
However, you can minimize the possibility of lower appreciation for your home by determining your price range and choosing an area where your target price is in the lower tier of prices in that area. That way, your home has less vulnerability on the downside and the higher-priced homes will help pull you up during hot markets.
Issued by Chas Everitt International
Article by: www.chaseveritt.com