Many people tend to think that the right time to buy a house or any other kind of property is at the time when the market is at its lowest. Well, this might hold in some cases but definitely not all. Many people love to buy when the market is low since the prices are cheap and hope that the values would start increasing when the market picks up. How can you know when the market is low? This is a question that you need to seek answers to. This is not achievable realistically. You cannot realize a low state in the market, but you can recognize dips in trends retrospectively. In that case, therefore, rather than wasting much time trying to predict the directions to which property prices would take the next time, it is important to get some useful and concrete information before you decide to dive in. If you can get someone who understands the property market to guide you, you would be the best placed person to get the best deals in the market.
Theoretically, the most ideal conditions for buying property are at that time when interest rates are the lowest. Interest rates normally affect costs of mortgage repayments. In that case, therefore, if you choose to buy when they are low, you will be able to pay less in the long run. However, in the reality, high interest rates are known to create a proper buyer’s market and thus offer some considerable advantages. In order to avoid paying high mortgage repayments, many people love to steer clear of buying houses or any other kind of property at such times. This does not however mean that the players on the other side would stop selling. With a low demand and high supply, you definitely have a large inventory and ability to choose a house that best fits your needs and preferences. Lack of buyers causes increased competition among the sellers. Consequently, there are high likelihoods that prices might dip below the market value.
When you are trying to figure out what is the best time to buy your property, it is of great importance to look at the main reasons as to why you are buying as well as your own circumstances. Are you looking for a new house because you got a job transfer? Do you want to move in to a larger house to accommodate your new baby? Or you are just tired of renting houses and want a place you can call your own? The right time for buying a house is different from one person to another.
HERE ARE SOME THINGS TO TAKE INTO CONSIDERATION:
- Do you have the right amount of finances? Before taking out a home loan, you have to make sure that you don’t have any outstanding debts. Try also to save some money on the side for the 20% deposit. If you want to borrow a little more than 80%, you will be forced to pay extra cash out of your pocket for insuring the mortgage. The form of insurance covers the lender just in case you default payments.
- How long are you planning to live in this house? Owning a home is most often a long term commitment. If you are planning to upgrade or even move to another house in the next five or so years, it would be unwise to buy a home today. When you want to buy a new house, you should be planning to stay in it for between 5 to 10 years. At least this duration makes your investment worthwhile.
- How urgently do you want to buy the house? Many property experts say that the best time to buy your house is at that time when you don’t really have to. If you buy a house under pressure, you are likely to accept a house that is below standard before you can analyse other great options that are currently in the market.
- Is moving convenient for you? If you have kids, moving might be an issue, especially in between the years. This is because you will need to arrange school programs for them. Apart from the aspect of buying your new house, you will have to check out the best schools in that area where your kids can get admitted. This is another task on its own.
If you have the right amount of finances to purchase some long term residence and relocate with all your family members, buying your new home might not be too much of a hassle in your case. On many occasions, people are reluctant to buy new homes because they don’t have proper finances that can enable them to start over a new life. If you fall into this category, you ought to make some plans first. Remember that relocation is not just about you, but your entire family and thus you have to make sure that everything goes as planned.