Is there a right time to buy a house?
People ask all the time when is the best time to buy a home. My answer: When you are ready to!
Home buying can be a simple process, but overthinking the steps and stressing about if you are making the correct choice or not will complicate the process. So, let's break down some of the different arguments about whether you should buy or rent.
What about interest rates?
We have enjoyed a very long period of low interest rates. Now that they have finally started to rise some people feel like they missed their opportunity and will continue to rent instead of purchasing.
Rates are still historically low! Just because you missed the lowest point doesn't mean you can't still enjoy a manageable mortgage payment. Someday we could see the rates rise as high as they did in the late 80s (11 percent).
But it should be quite some time before that happens. Also, if interest rates drop lower in the future, you can always refinance your house to lock in a lower rate.
How’s your job?
What kind of job do you have? Is it a career? Will you have to relocate anytime soon? How long do you see yourself working there? These are some of the many questions you must ask yourself when it comes time to buy a home.
If you are in a pretty stable work situation why not put down roots and find a home? If you plan on quitting or moving far away, a house purchase might not make the most sense. Unless you plan on using your home as a potential rental property.
Location, location, location
Do you know where you want to settle? Is there a neighborhood you can see yourself loving? If an opportunity arises to live in your dream area, why wait? Or if you see potential in the area and want to capitalize on an opportunity go for it!
Be open to a flexible timeline when searching for a home. My wife and I found our dream home years before we thought we were going to be able to move. But I saw the opportunity and jumped on it. And we are so glad that we made the move.
Many buyers look back and wish they had bought in a specific neighborhood when they had the chance.
Are you ready to buy?
While it might be tempting to go all-in for location or lock in that low interest rate, buy what you can afford. Even if it is not your dream home, buying a home is a great way to build your wealth and can help you towards purchasing your forever home.
Markets can take a turn, but if your payment is locked in and you enjoy your home what will it matter? Buying a home is a huge decision and should never be rushed. If you do happen to find a home that you can't imagine yourself without don't be afraid to start the process today!
