If you have been paying attention to the real estate news recently, you may have noticed that in many parts of the country, if not most, buyers are being shut out of homes due to higher prices and tight inventory. Experts say that current market conditions are making buying a home much more difficult than it was in previous years. Because of this, a lot of home buyers are now asking themselves if they should push through with purchasing property now, or if they should wait a while for a better deal to come along.
Either choice has its pros and cons, so it all boils down to a matter of individual circumstances and preferences. If you decide not to buy now, prices could go up even further in the future. Right now, rents are higher than monthly mortgage payments across the country, so you would end up paying more in rent until you finally decide to buy.
If you do decide to buy now and prices go up, you could accumulate instant equity and receive considerable tax breaks and other incentives, as well as gain a savings account of sorts.
The truth is that there is never any guarantee that home prices will turn in your favor, as the rise and fall of local markets can be hard to predict. At the end of the day, the most sensible thing to do might be to crunch some numbers and figure out what move makes the most sense for you given your current financial situation.
List down what you are currently spending for rent and compare it with what you can afford as a mortgage payment. A conservative budget would have you spending no more than 28% of your income on mortgage, taxes and insurance. Similarly, your other debts (such as credit card debt, other loans, etc) should not amount to more than 14% of your income. Consider all the other costs involved with owning a home, including moving costs, commutes, school, and of course, your down payment.
The final figures you come up with may seem overwhelming at first, but remember that buying the right home is a good investment that you can enjoy for many years to come.
If you are planning to buy a home, let The Incorvaia Team make the process as easy as possible for you. Call us at 440-879-7130 today!
