A home of your own. Isn’t that the ultimate fulfillment of The American Dream? It’s true that buying your own house for the first time can be one of the most important purchases you will ever make in your life. When done from an informed perspective and away from emotional baggage, a residential property purchase can indeed be a great investment.
Just like all investments, however, timing is everything. Being able to identify the right moment for you to start house-hunting can determine whether or not your home purchase will be a good buy. Is it time to buy a home because everyone you know is doing it, too? Is time to buy a home because it’s the “right” thing to do? Is it time to buy a home just because you have the money to spare?
The fact is timing is relative. It depends on many factors, such as the state of your finances or the market condition in the neighborhood you are looking into. Thus, a good time for you to buy may not be the same thing for another person. But based on market patterns and buying outcomes, it pays to watch out for these 3 signs. It is the best time to buy a home when you start to observe the following:
1. When the numbers are aligning in your favor. The housing industry is never constant. So you have to watch out for the trends and keep your ear to the ground. Now, try to make your move when the favors tip toward the buyer’s favor. When mortgage rates are dipping for at least half a year now, or when the growth of home prices is showing more signs of a slowdown… yes. It may be a good time to buy.
2. When you’re ready for the responsibility. The financial aspect may be so tricky to figure out, but that’s just one piece of the entire endeavor. Aside from knowing you can afford the mortgage and other costs of home ownership, are you ready to also be in charge of the issues that come with having your own home, including maintenance, repairs, paperwork, legal processes and more? Be clear about what you are expected to take on and be honest whether you are ready and willing to handle it.
3. When no one is buying. The classic supply-demand rule applies even to the fickle real estate market. When you’re competing with many buyers, then the seller will be in a position to ask for a higher price. But when you negotiate in a time when there’s a lower demand, there are more opportunities for you to land on a cheaper mortgage or a good buy.
