It sounds tired,
trite, hackneyed, even a
little specious,
especially when it's
become little more than
a marketing slogan used
to describe just about
any housing market, no
matter how bleak or
bright. However, right
now, the popular
refrain, "It's a good
time to buy," resonates
with a more resolute
ring of truth.
Remember that a
"good time to buy" for
you may not be the same
"good time to buy" for
someone else. Personal
considerations trump the
generalities.
Instead of making
the home-buying decision
based solely on market
conditions, consider it
in a more holistic
context.
It's only a good
time for you to buy a
home, typically, when
owning is cheaper than
renting and a home
purchase is a natural
fit for your financial
needs, goals,
obligations and
lifestyle.
Consider market
conditions -- it's wise
to buy low and sell high
-- but also examine your
complete financial
picture, other goals in
life and plans for your
family.
It's not easy.
The current market
offers a big carrot.
"Today, with the
real estate market
slowing in many parts of
the country, all the
market fundamentals show
that buyers are now in
the driver's seat," said
Jerry Howard, CEO of the
National Association of
Home Builders (NAHB), in
a recent release.
"Consider the
facts: prices are
competitive, rates are
low, the selection of
homes is high in all
price ranges and sellers
are ready to bargain,"
he added.
Right now,
however, if you take the
plunge but can't tread
water until the market
again surges with waves
of home price
appreciation, you could
sink.
On the other hand,
if you don't take the
plunge and home price
appreciation swells,
well, you could be
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priced out of the market
-- grounded.
"First-time home
buyers who choose to
'play it safe' and keep
renting are essentially
postponing the
opportunity to build
household wealth.
Currently, with rental
vacancy rates
tightening, they can
probably expect to see
an increase in the rent
they pay. No one can
accurately predict the
peaks and valleys of the
housing market. If you
try waiting for the
absolute best deal, you
could end up literally
waiting for years,
missing out on the
opportunity to become a
homeowner while prices
are moderating," NAHB
advises.
It's a real
Catch-22.
Over the long
haul, real estate prices
and values rise,
historically, by an
average of about 5 to 6
percent annually. At
that rate, the value of
homes doubles every 13
years, says the NAHB.
Your market may do
better or worse.
Will it pay to buy
and hold now or stick to
your current investment
and savings plans now
and buy in the future?
As you wait to buy, will
your financial planning
generate the same rate
of return or more than
you could expect from a
home investment?
How will you
compare the value of the
tangible asset that
comes with owning a
home? It's not just an
investment, but also
your own roof over your
head.
You don't have to
make the decision alone,
you probably shouldn't,
but you should make the
decision.
Get professional
financial planning help,
expert tax advise and
some experienced real
estate and investment
insight.
Maybe it is a good
time for you to buy a
home. Maybe it isn't.
But current market
conditions do indicate
it is a good time to
decide. |
