Should You Consider Buying a Home in the Current Market?
By Deanna Sletten
Photo: © Justin Horrocks / iStockphoto
The current real estate market is definitely a buyer's market. With the high availability of homes on the market and interest rates at historical lows, this is an opportune time for buyers to purchase the home of their dreams at an affordable monthly payment.
If you have been saving to purchase a first home and have a good credit score and very little debt, then this is the perfect time for you to buy a home.
Not only will you have a variety of homes to choose from, some that may not have been affordable if the market had been different, but you will also be able to obtain an affordable loan payment at a low fixed-rate interest rate. |
Be cautious, however, not to buy beyond your means.
Consider all the costs of home ownership, such as upkeep, and taxes and insurance, before you buy.
This is a great time for renters with a stable income to consider purchasing a home. With so many homes on the market, many due to foreclosures, you may be able to find an affordable home that requires very little down. You could even look into purchasing a small home, holding it until the market turns upward, then selling it so that you can move up into a larger home.
Newly retired couples, who have their home paid for and a good retirement, may find this is a good time to purchase a vacation home. With the good interest rates and the lower home prices, they may find a good deal that they otherwise may not have been able to afford.
For those who have money to tie up, this may be a good time to purchase a home as an investment or rental. As a precaution, it is important that you can afford to hold on to the property for a while. Use your purchase as a rental property for a few years. When you're ready to sell it, you'll find you've made a good investment. |
