Should I buy my first home now or wait?
Answers:
A salesman's job is to get a customer to buy something today, whether it is good or not. Salesmen know that a 'wait and see' is the same as a 'no thank you'. So take their opinion with a good dose of salt.
DC will not suffer the negative volatility of some of the nation due to the constant growth of employees there. We are down 20% (Colorado), its not going any lower, but wont get any better for at least 6 months.
That's what Fed Chairman Bernanke indicated his goals were- to prevent any housing worsening, but, it may last a while.
So as an Investor I would wait for an upturn on the market, but as a home owner there is no pricing advantage to waiting IF I see the right property.
Look for total cost of ownership (maintenance, utilities, insurance,) and potential appreciation rather than getting the absolute lowest price.
Then look for total cost of living- ie how much do you have to drive (time and gas) for shopping, schools, jobs, etc. Also crime rate. ( I have to avoid noise- that drives housing coist up for me- know your hot button).
You have maybe 6 months to get the property you want at a fairly good price. save up for the best down-payment possible to get a better loan rate. get used to tightening your belt - a new home is as money hungry as a sick newborn.
Would you look forward to working on your house, or would you like to pay someone else to do the work. You may be surprised that you enjoy or hate it- so help a buddy work on his house, building a deck, painting, etc.
Do you want a garden? Dogs?
So think about living in and with a house, not just the financials. If you are HAPPY in your house, it saves lots of money. If not, it is just another expensive irritant, like taxes.
Think about your question for a minute. The real estate agent says now is a good time. But, it's the real estate agent that has a vested interest in the housing market going up. Listen to people that do not have any vested interest.
Except for a few spotted areas of the country, for the most part now is not a good time to buy. Put your money in CD's or buy Gold. Wait for the housing market to finish it's adjustment.
The simple answer is that if you are buying this home for yourself to live in, there is never a bad time to buy. I live in Maryland and work in DC, and this is not the kind of area where things are going to tank and foreclosures are going to be going for $10,000 each, like in Detroit and Atlanta right now. If you buy now, you'll get the tax breaks sooner, which would probably not save you that much more money if you wait.
Yes the real estate market is softer right now, but it will turn around, and ultimately will beat renting & giving all of your money to a landlord.
If you plan on owning your home for at least 3-5yrs or longer it will be worth it. No more landlords, it's your house, homeownership is so important & it's the American Dream!
There are a lot of choices out there for you right now. You should also be able to ask the seller to pay ALL of your closing costs.
if i could afford it would go ahead and buy now and if its your first home they have alot of programs for first time buyers.
Definitely, you should start a high interest savings, even if your in a hurry!
Don't sweat the high price of real estate in DC.
I'm in California in a three bed room,two bath,1300sf,built in 80's for $325!
Real estate is the best form of investment there is, as far as appreciating value.
Unless your moving in to a bad part of town, the value will probable move higher!
Although if you want to be a more informed consumer, you can check the web for values of homes in the area that you want to move.
It should be obvious, shortly, if the price is going up or down.
Good Luck!
here are tips on selecting a property:
-look for transport improvement expected in a locality.
-Find out if there is any new development of property in your locality
-Observe whether the authorities are enhancing the locality
then you can think is it right or wrong to buy now
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