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If you've been considering buying a house but you're still unsure, consider some of the personal and economic conditions that favour home purchases. If you find that a number of these points ring true for you, it might be time to give me a call and start shopping.

 

1. You're Ready to Commit

First and foremost, if you're not ready to commit to owning a home, you should not buy a house. Home ownership comes with a plethora of responsibilities, including home maintenance, property taxes and the process of selling the property when it comes time to move. Legal fees, moving expenses, and all of the incidental costs associated with buying a home can really add up. Consider whether you have a stable job that will provide a solid income for a mortgage, and if there's any chance you'll have to relocate in the near future.

 

2. Owning Costs Less than Renting

If you've examined your budget and realized that your monthly payments associated with buying a home are less than you're currently paying in rent, it's time to consider a home purchase. Talk to your bank and look at what your mortgage payments would be for a variety of different properties and gauge what you can afford. Factor in any additional costs you may have to pay, such as condominium fees or extra utility bills, and compare your total costs to what you're paying in rent.

 

3. Low Interest Rates

When interest rates are low, it's a great time to look at buying a home. You will be able to get a reasonable interest rate on your mortgage loan, which can save you a lot of money in the long run. A home is generally the single largest purchase anyone makes, and the amount of interest tacked onto a mortgage really adds up over the years that you're repaying the loan. Even a difference of a fraction of a percentage point can make a pretty big difference over the long term.

 

4. Adequate Funds for A Down Payment

Having a hefty down payment helps in the same way as finding a low interest rate. Ultimately, the less you owe, the less you'll have to repay and the less you'll have to tack on for interest. If you find yourself with a nice lump of cash, putting it toward a home purchase is definitely a solid financial investment. Just think, you'll be building equity in your home which you'll see again when you sell, and you'll have somewhere to live in the meantime.

 

5. Seasonal

During the springtime, more house listings tend to come on the market. With the poor winter weather over and the kids nearly done school for another year, this seems to be the time when most people are willing to take on a move. Having more homes on the market means a wider selection - and a greater ability to negotiate price. However, this is also the time of year when more buyers are in the market. Circumstances will depend on your particular market conditions, but the arrival of spring typically revives the real estate market after quieter winters.

 

Source: Janet Fowler, Investopedia.com

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