When is the right time to buy a home?

If you ask ten people when is the right time to buy a home, you'll probably get ten different answers, including some of the following:

1. Now!
2. When you have money saved up for a down payment.
3. When your family situation changes and you need more, or less, space.

My mom still lives in the home that my dad and her bought back in 1968. It was their first home. My dad died there, and I suspect my mom will, too. Even though homes have vastly depreciated over the past three years, my mom's home is still worth about twenty times what my parents paid for it in 1968, and my mom owns it free and clear. Once this market ends and returns to something normal, the value on her home will increase again. If she does need to sell it to pay for extraordinary medical expenses or assisted living care, the value will be there.

That brings me to my answer to the question, "When is the right time to buy a home?"

• Whenever you want, as long as you plan on living in that home and raising your family there.

The reason why I adhere to that answer is because real estate values go up over the long term, so if you'll think of your home as a long-term investment, then you'll be able to enjoy it until you need to sell it many years from now and use that money to provide for you in your old age.

If your intent is to buy a home and then sell it two years down the road, hoping to use your home as a cash machine, which I believe is at least partially the cause of our real estate and economic mess, you could get into a situation that could cause you to lose your home to a foreclosure, or to have to sell it in a short sale. The longer you plan on holding on to your home, the better off you will be.

Now's a great time to buy since lending rates are still at record lows, many homes are affordable again, and there's a good selection of homes to choose from. Buy for the long-term, though. Buy a house to turn into a loving home where you can live and raise your family.

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Need help buying or selling a home in San Diego County?
Moving here to work on Stimulus Bill projects?
Visiting and would like a vacation home here?

I can help you find the best just the right home or just the right buyers
to meet your real estate needs, wants, and goals.

I'm available 24/7, so feel free to contact me by phone or email.

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This week's posts (they'll open in a new window):

1. Seven ways to speed up the sale of your home - 6/8/09
2. Market conditions continue to improve - 6/8/09