The Timing of Buying a Home

One of the most concerning factors for people investing in a new home is the market timing. Is it s good time to buy? or a good time to sell? It is obvious that there are times in our American economy when things are booming. People are buying cars, buying houses, going out to eat, and taking vacations. Other times, the economy declines and people are loosing jobs, making careful money decisions, and putting what little they have left over in the bank for safe keeping. It is the general feeling of most homebuyers and sellers that timing is extremely important. Attempting to read the market and make an educated guess about where it will go next is a very popular strategy for those involved in real estate, but unless you are making real estate a career, versus buying a home for your family to live in, timing is less important than you might think. Similar to stocks, day traders need to be masters of reading news and media and understanding the ebb and flow of the market, while long term investors just need to choose a stock they believe in and hold on to it. Obviously when the amount of houses on the market is larger than the amount of potential buyers, the appreciation of homes will lessen or even drop. It is almost certain that the economy will rise again, presenting the reason so many people attempt to take advantage of low economic periods. However, first time buyers are almost the only people that really capitalize on buying a house during an economic recession. If you are moving from one home to another, the low economy will give you a great price on the new home, but you will lose money on the old one. The same is true if you are selling your house in an economic boom, the new house you purchase will likely quite expensive. It is important to realize that if you are really looking for a place to live, timing should be left up to finding the right house for you and your family to enjoy.No one can accurately predict the future, even when it comes to the economy. No matter how much research and economic understanding anyone has, there are always events and circumstances that can change the way money goes. Even if you are able to buy a home during a depressed period, it is common for interest rates to be higher due to the larger risk financial institutions will be taking. For this same reason, fewer people qualify for loans. The bottom line is the sooner you buy a house the better because the more payments you can make, the more equity you own in the house, and the more your investment will be worth. No one that is trying to find a long term home should wait to buy based on their premonitions of the market rising or falling. In the end, it almost always evens out. Regardless, your property will increase in value, and the home you choose will almost always be your most valuable financial asset.

Comments? Questions? Email Here

© HowtoAdvice.com

How to Advice .com