Is this a good time to buy a home?
Should you wait to buy a home or continue renting for a while?
Should you wait to see if the government is going to have another homebuyer tax credit?
As a Tax & Financial Advisor, I hear questions similar to these quite frequently.
Buying a home is a big decision that should never be made lightly or hastily.
And unfortunately, the answer to all these questions is, “It depends.”
Everyone’s situation is unique and everyone has a different story. I think it’s wise to consider your specific situation before listening to anyone who says outright that “now is the time to buy” or “now is the time to sell.”
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My #1 Rule When it Comes to Buying a Home:
Only Buy if it Makes Financial Sense TODAY!
Sure we all want our house to be worth more when we sell it than when we buy it – I know I do!! And sure no one wants to pay more in interest than they have to. But we don’t know what’s going to happen next week, next month, or even next year. Our decision to buy a home should be based on whether or not the numbers make sense TODAY!
If you are thinking more about the future and what you “hope” will happen, then you shouldn’t buy a home today.
One of the many reasons the housing market crashed was because home buyers were hoping on the future.
- People were buying homes hoping they would appreciate so they could refinance or move up to a better home.
- People were buying homes and hoping they would make more money in the near future to afford the house payment.
- People were buying Negative Amortization loans, and hoping that they could refinance in a couple years into a better loan.
My advice is to only buy a home if it makes financial sense TODAY! If the numbers all make sense today, and you can afford the house payment today, then buying a home might be a good idea for you.
Factors to Consider Before Buying a Home
- How long are you planning on living in your home?
- Find out what you’re pre-qualified to buy BEFORE searching for homes.
- Talk to a Qualified/Friendly Real Estate Agent who will assist you and not push you.
- Consider how owning a home will affect your income taxes.
- Make sure you can afford all the additional costs that come with owning a home – there are many!!
We can never know exactly what is going to happen in the future for the housing market. The ‘experts’ are proven wrong almost every day.
The only thing we can do is see if the numbers make sense today. If all the numbers make sense today for you and your situation, then the future shouldn’t matter as much.
If you need any assistance learning about how buying a home may affect your income tax and financial situation, please feel free to contact me anytime.
*Please keep in mind that all the information I post on this site is for general purposes only. I understand that every person’s situation is unique and should be treated as such. If you would like more information about how something listed in any of my posts specifically affects you, please feel free to comment below, email me, or call me anytime.