Buying a house is one of the biggest investments we may ever make. The real estate market has been on a roller coaster ride for the past few years with houses soaring in prices and now leveling off more. So, should you wait or dive into purchasing a home?
The benefits
Mortgage rates have been high over the past couple of years, but we are seeing a slight drop lately. Higher mortgage rates can sometimes deter other buyers which means less competition for you. Less competition makes you have a better negotiating position and a better deal on a home.
Stability
It doesn’t matter what the mortgage rates are real estate is a stable long-term investment for you. Over time property values tend to increase which will offset any higher interest rates.
Equity
When you buy a home, your equity starts building immediately which is a beneficial investment for you.
To buy or wait?
As with any investment, you should do a little bit of planning first. If you are considering purchasing a home, check the following:
- What’s your credit score? If you are not sure, check with your financial institution.
- Have you saved enough money for a substantial downpayment?
- Are you planning on staying in the home for the next 5-10 years?
Your next move
Nothing is more exciting than deciding to buy a home. Whether it is your first home or your 10th home, there are certain things that need to be done to ensure a smooth purchase. What we sometimes forget is the other information that we wish we knew before we took the plunge.
Don’t borrow the maximum for your mortgage.
Don’t use up all your savings for a down payment.
Use a trusted real estate company.
Buy with the future in mind.
Whether you are still deciding on whether to buy or not right now, it’s vital to understand the real estate market. Our Anne Winch Real Estate and Staging Team can help you make informed decisions that align with what your vision is – both financially and personally.
We hope this information will help you through some of your worries when buying a home. Our Team can help you through the home-buying process and we are here to help negotiate the purchase of your new home with the least amount of stress for you. Give us a call for any of your real estate needs.