To Buy or Not To Buy? That Is the Question

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There are a number of reasons you might be thinking about buying a new home. Perhaps you need more space, or looking to downsize. Or maybe you are tired of renting and ready to invest your money in something you can call your own. You could be facing a change in your job that calls for a change in your location. Or you are just simply bored with your current place and looking for something different.  Whatever the reason may be, buying a home is a big decision that should be carefully thought through.

Purchasing a home is a huge investment that will not only affect your finances, but also your lifestyle. Even if you are a billionaire or have loads of cash lying around somewhere, impulsively buying a property is not usually recommended, especially if your real estate knowledge and experience in less than proficient. You should approach the decision delicately through thorough evaluation. An evaluation of what, you ask? Everything. As a starting point, focus your decision around this simple question: Is the time right?

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Take a look at your financial position; are you able to make a solid down payment? Is your income steady and stable? How much are you comfortable in spending? When asking yourself these questions it is imperative to remember that the purchase price of a home is not the only thing to consider. Owning a home requires a number of additional expenses you need to include in your evaluation—property taxes, utility expenses, homeowners insurance, maintenance expenses, etc.

Next, take a look at external elements; what are the current mortgage rates? How is the market doing? Is there a lot of inventory to choose from? Are homes selling above or below their market value? You need to evaluate what your money is able to get you and if the investment is worth making. The real estate market is a constant wave of change, so studying your area’s current performance is essential to determine your best option, whether that be to buy now or wait for conditions to improve.

Special tip: To make a more informed and confident decision, your most valuable resource is the personal advice of a real estate expert in your local area. No one understands the current local market like those professionals who deal with it on a daily basis. They can walk you through this evaluation, answer your questions, and offer recommendations based on your individual situation.

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Posted on June 7, 2013, in Buying, Real Estate 101. Bookmark the permalink. Leave a comment.

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