REAL ESTATE 101 - Should You Buy Now?
Timing Your Purchase to the Market Cycle.
So, you've decided to buy a home....we think thats great! And now you want to wait for the best market environment in order to get a better deal on interest rates, etc. right? At Homestead Realty, Inc. we know it seems only natural to sit on your decision to buy real estate while waiting for the best opportune time to secure financing. Unfortunately, that is not always the best idea!
One problem with delaying your impending real estate purchase to the business or stock market is that we all know that we cannot predict the future~even experts have problems predicting the stock market and the future of our economy. Beware of those real estate scams lurking in the shadows just waiting to pull you in! Even so-called real estate experts can have lucky guesses now and then but remember this: the real estate market is not necessarily tied to the stock market or the economy in a neat and easy package. Our friendly staff at Homestead Realty, Inc. knows that nothing is as easy as it may seem.
So why not buy your dream home right now....why wait?
Homestead Realty, Inc. knows the most common issue for home buyers is the interest rate. Every home buyer wants the lowest interest rate available. We understand that. Unfortunately, when the economy is doing well, interest rates go higher making home buying more difficult. We realize that a coveted low interest rate means means the economy needs to slow down. When this happens, interest rates tend to drop therefore making home buying more affordable in most cases. But the bad thing about a slower economy could be less job opportunities which could then mean less opportunity to buy a home.......
now can you understand the cycle wer're concerned about?
And of course, we cannot forget that when the interest rates are lower, more people can afford to buy a home and that translates into more competition for that dream home or property you have been waiting for! So what does all this mean to you and how do does it affect your future real estate purchase?
It means if you've found that dream home or property and all is in order......BUY NOW!
We understand at Homestead Realty, Inc. people who already own a home usually need to sell it in order to come up with the down payment for their next home~sound familiar? Even if they don't "have" to sell, they would have to carry the debt and obligations on two homes all at the same time. This undesirable situation can create financial hardship, even when you rent out the previous home which, in itself, creates an entirely new set of demands and possible financial hardship. And, don't forget the maintenance costs, and renters don't always make their payments on time, the rent may not cover the mortgage and other costs, and sometimes the property may be vacant. So, while you're waiting for interest rates to come down just to buy your new home, those coveted lower interest rates will usually take home buying into a depressed cycle-this means less renters who can afford to pay rent and of course, this will mean less money for your current home! And remember, if you want to sell during a great housing boom, then chances are you will be buying your new home in the same boom. These two conditions often wash each other out. If you are a first time home buyer waiting for lower rates just how long will you be willing to wait; how much patience will you have waiting for the next housing boom to come along? Consider this: the sooner you buy your new home or property, the sooner you would be ready to cash in on a lot of depreciation when the market does drop.
At Homestead Realty, Inc. we believe most real estate experts would agree that buying real estate and holding onto it is the best strategy when purchasing real estate. What this means to you is: buy your home and plan to stick with it for at least 7 years or more.
If alll this real estate information makes your head swim, just give us a call~
we'd be glad to help at Homestead Reatly!
House or Home? Real Estate Wishlist Should You Buy Now?
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