3 Questions You Must Answer When Buying a Home

May 5, 2012

 

If you are thinking about purchasing a home right now, you are surely getting a lot of advice. And some of that advice is probably negative. Why buy now with prices still falling? Don’t you realize real estate is no longer a good investment? Don’t you know that people who bought six years ago lost their shirt? We understand the concern your friends and family have. However, let’s look at whether or not now is actually the perfect time to buy a home.

There are three questions you should ask before purchasing in today’s market:

1. What are the experts recommending?

In the last 120 days, many experts have said that buying now makes sense. This list includes: John Talbott, Christopher Thornberg and Warren Buffett.

2. When will I begin to see appreciation if I buy now?

This is a great question. Macro Markets, LLC is a company that studies housing prices. They started their Home Price Expectation Survey in 2010. They ask 100+ housing industry experts to project housing prices through 2016. The most current survey shows that the experts are predicting prices to remain relatively flat in 2012. The experts then project prices to rise reaching a cumulative appreciation of over 10% by 2016.

Purchasing a home today makes great sense from a financial standpoint. Think of the old axiom: you want to buy low and sell high. This decision should not only be a financial one however.

That leads us to our third and final question:

3. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. The Fannie Mae National Housing Survey shows that the four major reasons people buy a home have nothing to do with money:

  • A good place to raise children and for them to get a good education
  • A place where you and your family feel safe
  • More space for you and your family
  • Control of the space

What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the reason you decide to purchase or not.

Bottom Line

Don’t allow money to get in the way of you making the right decision for you and your family. In the long run, the finances will work in your favor anyway.

Enhanced by Zemanta

Comments

Got something to say?





    • Belmont
    • San Carlos
    • Redwood City
  • Subscribe

    Email Newsletter

    Never miss any valuable information on Belmont, San Carlos or Redwood City.

    Enter your email address to receive blog articles in your inbox:

    Enter your email address:

  • Home Search

Recent Comments

  • coupons zovi: If some one desires expert view concerning blogging after that i advise him/her to pay a visit this...
  • usb pt1000 power: I have learn several just right stuff here. Definitely value bookmariing for revisiting. I wonder...
  • vans clot: Hello there! This article could not be written any better! Looking through this article reminds me of my...
  • organizare team building: Hey! I could have sworn I’ve been to this blog before but after reading through some...
  • colic calm kopen: Heya i am for the first time here. I found this board and I find It truly useful & it helped me...

Brought To You By