When is it a good time to buy? My first response would be when your financial situation permits then I would say when the market is desperate. When the market is cold, buying a house/property is one of the best moves one can make. Combine it with low interest rates and a low minimum down payment requirement and you'll find yourself in a "no-brainer" moment. A large percentage of people acquire their wealth from their homes equity and like Robert Kiyosaki teaches, never buy when the market is hot. Whether it's a stock, commodity, or a property, we all saw and experienced the devastation of buying when the market was booming. You'll buy the property at or close to its peak not leaving much room for appreciation.
One must also consider the future when selecting a home meaning that in the future when you decide to move up due to your family growing, relocation of job, or if you simply want a newer home you will most likely rent your current home. Think to yourself, can I rent this house to a family fairly easy and will the rent cover the mortgage payment? "Cash flow is king"! By renting the home for more than the mortgage payment you create cash flow. It's considered king because even if the home does not appreciate in value you still generate another pillar of income and regardless of the situation, it will not place you in a bad financial situation. A great strategy to consider is reinvesting the new found income into an interest bearing account and guess what; you are on your way to your Freedom Point. What is a Freedom Point you ask? When your assets exceed your liabilities and you reach a point where your assets allow you to pay off your home.
Now back to buying your first home in this market. We are currently in a REO (Bank Owned), short sale, and distressed sale market. These homes have been generally abused, vacant, not maintained, or simply in need of a little TLC. Expect to have some initial repairs or improvements made to the house upon purchasing. Treat this endeavor like you would a business. The number 1 rule is... never use your own money! Since you are buying in a low market, you can expect value to go up in the future so invest the banks money (credit or a personal loan) to fix up your investment and when time permits, pay it off. Your credit file will become stronger because you're adding another tradeline to your credit profile and by keeping the balance at 50% or below the maximum limit and by paying at least $1 more than the minimum payment you are setting yourself up for future gain in FICO scores. I'm not saying that you should go out and open a bunch of credit cards and loans, but by opening up an account that is going towards financing the improvement of your home then by all means, do it.
Consider acquiring credit in the form of a credit card or even a Home Depot home improvement loan, but remember to add that payment (1-2% of the balance) to your overall pre-qualification. Not including it will put yourself in a tight financial situation and it will keep you from reaching any future financial goals. Have your Mortgage Planner prepare a mortgage plan that coincides with your overall financial plan and include all the repair and improvement costs. Be sure you know what your loan looks like now, 10, and 20 years down the road as a small mistake can add up to be a big difference not only in total costs, but with your total net worth.
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