If you are like most people, the thought of making a sizable investment like buying a home can be a daunting decision. With so much at stake many people find it can be overwhelming when faced with so many choices when it comes to investing in real estate. Location, financing, and affordability are usually at the top of the list when it comes to taking a path to home ownership.
So when is the right time to buy? To make an informed decision you should take a deep breath and plan your strategy to determine when is the right time to buy. Here are a few things to consider:
Your salary just increased by twenty percent or more
You may think a sudden increase in income will provide the opportunity to buy that new home. But consider waiting another year. You can save that extra money for a larger down payment that will benefit you more in the long run.
Do a price comparison of rent verses mortgage
Compare your current rent with the price of a comparable home for sale. For example, if a house costs $90,000 and a comparable residence rents for $500 per month, the house price represents 180 months, or fifteen years of rent. It is a good time to buy when the figure is less than fifteen years. If the math works out to more than 25 years, it’s not a good time.
To continue reading this article click Buying A Home – When Is The Right Time?
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