The real estate market in the United States has been in the doldrums for many years now. There was a point in time where families in the metropolitan New York Area assumed real estate would go up forever. By now they have learned this is not true. What went up, has come down! So are we at the bottom of a market cycle? If we are at the bottom of a market cycle, is now the right time to buy a house?
Long Term Investments
Purchasing a house is a long term investment. Most families purchase a home with the hope that over time it will appreciate in value. Most real estate experts recommend, if you purchase a home, you should consider owning it for a period of at least ten years. If ten years is too long a period for you to be saddled with a real estate investment, maybe the best route for you to take is to rent.
Can You Afford The House?
If you start looking for a home with real estate brokers, there is a tendency for the brokers to show you what they would consider your “dream house”. Unfortunately, dream houses are expensive. How much can you spend on a first home? Should you buy a starter house with the hope it will appreciate in value and you will trade up down the road? Be aware, there are numerous transaction expenses related to obtaining a mortgage and closing on the purchase of a home.
When To Buy The House
Most pundits recommend buying your first home when you are settled in your life. What does that mean? To begin with you should be finished with school and have a good job. Hopefully a stable job!
Before you buy your first home, sit down and figure out what all of your expenses are and how much you can afford for mortgage, taxes, utilities, maintenance of the house, upgrades, food and all your other living expenses. Good luck! It tends to usually be more expensive then you would assume.
About The Author
Elliot Schlissel, Esq. has been dealing with residential real estate related matters for more than three decades. His law firm is involved in handling all types of foreclosure defense related cases throughout the Metropolitan New York area.
