Good time to buy a house?
Answer:
yes, my realtor said the market was hot
This is a very good time to buy a house? Want to buy mine? This is not such a good time to sell a house. Want to buy mine?
THE BEST TIME TO BUY A HOUSE IS BETWENN THE FALL AND NOVEMBER,people like to be settled before xmas and not alot happens on the house sale front at that time, the fall has been tradionaly the best time to buy
good luck
real estate is dropping, but interest rates are rising. You can wait for houses to drop some more, but the interest rates may be very high then. I would say yes, better to buy now then rent any longer.
Yes, it is a good time to buy because lots of homes are on the
market now. Try this Site for Ideas on what to look for when
searching for a home: http://www.realmoneyideas.com Go to the
"Real Estate" page.
Lots of great info there including a Free "checklist" of what to
look for on the inside and the outside of a home.
The short answer: YES!! It's always a good time to buy.
The longer answer: There are many more benefits gained from owning your home than merely financial ones. When you own your home, you feel better about just about everything in your life. In many ways, it validates your adult existence. (Sorry. Darnit! I've got to stop being metaphysical about real estate.)
Another longer answer: Browse through my website, particularly this page: http://www.first-time-home-buying.net/pr.
The financial aspects of home ownership should not be ignored - it is possible to lose money in the short run, but it is not at all likely. It is nearly impossible to lose in the long run! The longer you wait to buy your first home, the older you will be when can own your own home "free and clear." It simply doesn't matter if the market is purportedly "bad."
Yet another longer answer: Ask a real estate agent.
And probably the longEST answer: Ask a real estate lawyer.
IT depends on what you want from the property, and how long you plan to keep it, and what the local market is doing.
If you are buying a house to live in for a long time, go for it.
If you are shaky about your job prospects, or what you want to do with your life, its probably not such a good idea.
The important thing to remember when in the investment real estate business is that there is ALWAYS a good deal. That means regardless of whether you are in New York, NY, or College Station, TX, regardless of whether the "real estate market" is up or down, there are good deals. You must evaluate the property in front of you. Has that neighborhood been going up or down in value? Have you checked with the planning commission to see what future development holds? What are your interest rates? What kind of income will be generated from this property? These are only a few of the factors that can influence your deal. So remember that no matter what advise anyone gives about general real estate investing, the only important information concerns the property you are looking to buy. If it is a good deal, then the time is always right.
How to value a property during market downturn?
Housing market continues to slump. Now we can calculate true value of a property easily. As price decline, we don't need to guess and factor in the potential price appreciation while calculating home value. Without the guesswork, figures are more accurate.
Let's use following example:
Today, a typical 15 years old, two bedrooms condo/townhouse is priced around $500,000 and $550,000 in Sunnyvale, California. Rent for similar condo/townhouse is $2000/month.
If you are a home owner, $2,000/month in rent means $20,000 a year in profit ($24,000 per year in rent, minus $4,000 maintenance costs). A $20,000 income is equilevant of owning $400,000 bonds or CDs, because current yield of 30 Years U.S. treasuries are 5% (5% of $400,000 is $20,000). Bank CDs have similiar yields.
In our example, the two bedrooms condo/townhouse is 20% to 25% overpriced. They should be priced at $400,000.
It is interesting to note that if we redo the calculation from buyer's perspective instead of seller's perspective, the figures are even more shocking.
Mortgage payment consists of two parts: mortgage interests and mortgage principal. The interests portion is similar to rent. If you pay interest, it disappears and doesn't add equity to the property. To fully simulate characteristics of renting, we assume buyer will apply for a zero down, interest-only loan.
It turns out that rent of $2000/month is equivelant to mortgage payment of a $340,000 loan at 7.0% APR. And comparing $340,000 loan to $500,000 or $550,000 price tag, from buyer's view, the two bedrooms condo/townhouse is 30% to 35% overpriced.
One may ask, why is there a discrepancy between two perspectives of the buyer and owner?
The discrepancy is a result of 2% differences in interest rate that buyer borrow comparing to yields of bonds and CDs that owners would get. We understand that buyer would always pay more. That is the premium of buying to own. However, looking from home owner's perspective, current housing market is probably 20% to 25% overpriced. We recommand investors to wait for a better entry point.
YES!
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