Is real estate market a risky place to buy right now?

Is the real estate market a risky place to buy right now?

 

Are you thinking of purchasing real estate right now and little bit nervous? Wondering if this is a good time?  Will prices come down? You don't want to purchase at the top of the market right?  All these questions and what is a person to do?  I tell you no one has crystal ball and there is no absolute to your questions so let me give you may personal, experienced answers to the questions.  First of all explore the reason you are purchasing or considering purchasing in the first place.  For example lets say you are purchasing a home to live in and you currently do not own home.  If you can get into a home, BUY SOMETHING NOW!  Why can I say that? Well you are paying money to someone to live someone where (unless you are lucky enough to be living somewhere rent free) so you may as well build equity and build a legacy for your family and not someone else's?  How do you know you are not at the top of a bubble?  Well truthfully you do not so the key is making sure you purchase something you can afford monthly.  You see the price you pay, your interest rate truthfully do not mean as much as your monthly payment.  Why? Well as long you can make your monthly payment it makes no difference what the market is doing either upwardly or downwardly.  This factors only matter if you are looking to sell or take a loan against the property.  That is why I tell people don't wait until prices come down, because normally if prices are coming down the interest rates are going up. If that happens it effects your monthly payment which is THE most important factor.  Consider this: what if you purchased a home in 2007 or 2008 when the market was considering crashing?  What if you purchased ANYTIME SINCE THEN? What would your home be worth today?  What if you bought something and now you possibly could be selling it, taking the proceeds and purchasing another home maybe bigger or maybe a different area or maybe just to cash out!  Remember real estate is NOT like the stock market.  Stocks go down and that money is gone UNLESS the market comes back. If you invest in real estate no matter what the prices are doing you have a HOME! A tangible asset that if you do nothing ever but pay will eventually be paid off and owned out right.  Yes if you can buy now do it!  If you can not do WHATEVER you can (legally of course) to get in position to buy. Contact us ehustle@elginwalker.com 661.290.3781 www.elginandpilartalkrealestate.com