How time to the market to buy a home

Everyone looking to buy a house is looking to get a “deal” to some degree. The home has to fit within the monthly budget in support of a sound financial decision. Part of this process is identifying marketing time so you can buy a home successfully…

The great investor warren, Buffett has been quoted of saying “I buy when there’s blood in the streets.” In other words, he buys when there is financial pain. You do the opposite of what everyone else is doing using this concept. As of now, 70% of the home buyers who otherwise would be buying a home right now are presently on the fence waiting for lower interest rates. Waiting for rates to come down could be a good financial strategy thinking you might be able to get a lower payment might be possible depending on the market, but are you willing to bet your financial future, your future family happy memories, and your net worth based on what the market will, or will not do? That’s a big question to only you can answer for yourself and your family. Buying when there’s less competition where you can negotiate on a home in a buyers’ market is a sound financial move. You can always refinance and trade out the interest rate in the future, but you cannot trade in the house for lower property taxes in the future. Property taxes depending on where you purchase in most markets generally are fixed. Rate and payment can be lower, property taxes not so much. The higher price you pay for a home, more you pay in property taxes, that some something to consider.

The one element you ought to be keenly mindful of is no matter what you can do, think, say, or plan you cannot time the market. It is akin to chasing a needle in a haystack. What you can do, however, to some degree is control your income, the amount of monthly expenses you have, your credit score, and your down payment. You focus on the needle movers you can control within your grasp and you let go of the concept of “timing the market”. Real estate is, was and always will be a buy and hold game. That being said if your goal is to buy a house, you plan to keep it for 5-7 years you’re to do going extremely well for yourself financially. You get to write off the mortgage interest, you get to write off the property taxes, you have to write off the expenses if it’s a rental property, and you also get the home equity accumulation in the property, which is a driver of the net worth, making you wealthier. It benefits you in multiple diverse ways. Even if the house is a rental property and there’s a small monthly negative you still get the tax break and you get the equity appreciation. The right time to buy a home is when you’re optimistic about your income, it is stable or rising, you’re grounded on where to live and work, and you’re feeling sound about your financial picture- that is when you should buy a home. If go into the home search process with this mindset for success you will sleep easy at night, knowing you made a sound financial decision which ultimately affects you and your families’, happiness and finances.

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