Kelly Barnhart, CRS, ABR
Call now: (702) 340-6232
Kelly Barnhart | Call Direct at: (702) 340-6232 | Email: kbarnhart@windermere.com
Should I BUY or Should I RENT now...
Posted on March 3, 2009
Market conditions play a huge part in any decision about when to buy. Housing market values have varied widely from region to region in recent years. While the Florida market has seen meteoric rises in home values, Las Vegas has seen its real estate prices go into negative territory in the last year. Do not buy high and sell low. It's all about you! The top three reasons people file for bankruptcy are change of job status, divorce, and unforeseen health expenses. If you face any of these challenges and don't have a financial cushion, this may negatively impact your ability to pay a mortgage. Big life events dictate your readiness to buy now or to wait for a little more stability.
Potential signs that you should NOT be buying now:
Potential signs that you should NOT be buying now:
- Will you be moving within the next five years?
- Will you be having kids soon?
- Will you be making a job change?
- Have you recently filed for bankruptcy or is your credit score below 630?
If you answered YES... ...to any of these questions, or you are experiencing other life-changing events like illness, marriage, divorce, or breakup, you may want to wait.
On the other hand, if you are willing to buy a home that needs a bit of work and, over time, you can afford to get it done, your home could appreciate faster, strengthening your financial position. If you are willing to take on a roommate or renter, you can also soften the expense of a mortgage, which almost always costs more than rent. Buying a home is a risk, and it's worth asking yourself hard questions about what you're willing to do to protect yourself from getting in over your head.
If you answered NO...
...the life-change questions, and have the down payment or equity from your current home, you still need to look at interest rates and at how buying affects your taxes. You can't time the stock market, but you can time interest rate hikes, as they are a little easier to predict. If they are going up fast, you can jump in before they rise too far; if they are already high, you will have to calculate how refinancing in the future affects your budget. What to do first? If you are anxious to get moving, be patient.
You have a few things to do first:
- Go to open houses - get the lay of the land
- Talk to a mortgage broker to get pre-approved, discuss your payment comfort level and purchasing ability.
- Interview and select a Reputable Real Estate Firm and agent
- Review credit report and scores with mortgage broker to determine if any repairs are needed
So take a moment to breathe in today's economic environment and realize it does not need to stress you out! Proper advance planning with the Right real estate professional will make this whole experience exciting and easy!
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