One very common consideration when choosing to buy a home is timing. They say timing is everything. Unfortunately, some things are completely unpredictable. Many who are buying wonder if it is a good idea to wait a year before they buy, or if they should buy now in the current market.
On Interest Rates
Sure, interest rates may go down. That is a definite possibility, but so is the possibility of them rising. You could read the sun and stars along with every expert article on the topic and you could still get it wrong. What you should do is plug yourself in with a good lender and build a long term relationship. If they are good at what they do, then you’ll have a good pulse on what is happening in the immediate future. It is more advantageous to be able to see the immediate trends since in reality no one knows what the world will be like a year from now. You may also want to gauge the competition in any given market. When you wait until everyone else is buying, then you run the risk of competing against many other offers. Sellers love this, but you may not. I know people that simply could not compete in their home market against the many offers coming in. It is a reality that can happen again.
Interest Rate VS Property Values
Take a bite out of this cake. Now be sure to look into your specific areas and neighborhoods, but the resounding truth is that home values are increasing at a steady rate that outpaces your potential savings on a slightly lower interest rate. Again, speak to your lender. Your lender can run some numbers to illustrate this point. If the home you want to buy increases in value by 5% within a year then you would simply pay more. If most homes are increasing at that rate, then it is a key metric to consider.
Buy now, claim home ownership advantages sooner
Home ownership has its advantages. Things like tax deductions, building actual equity vs renting. You have more long term stability and can leverage your equity if need be. You simply have more options and advantages here.
Don’t Assume
Yes, you read that right. Don’t assume. Don’t assume anything. Find out by speaking with professionals who do the work everyday. Speak to professionals that plug into their networks everyday. Simply put, they know things you’ll never know and it isn’t a competition to see how much you can figure out on your own. Use the knowledge of others to your advantage. So don’t assume, and have as many conversations as you can fit into your day. Then do the same thing again the next day. The worse thing you can do is assume you won’t be able to do something. Gain the knowledge along the way and have others offer assistance. That’s why they are there.
