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To Buy or Not To Buy – The Dilemma

By
Real Estate Agent with Tierra Antigua Realty

Home Buyers are faced with the dilemma of whether to buy now or wait. With the economy as it is many area afraid that tomorrow they may not have a job. There are a few ways to deal with that situation. First is to know your job market, career path, business performance, etc. If you just started and there are rumors of bankruptcy for the business, probably not a good time. If your company is growing or stable, then you outlook is much brighter. In her blog Suze Orman vs. Warren Buffett: Whose Real Estate Advice Should You Follow? Tara-Nicholle Nelson makes good points about buying.

Second, I'm with Warren Buffett below:

  • Ditch your "dream home" for a practical pad. Need vs. want here. Be practical in purchasing a home. Do you really need a larger home, or just want it.
  • When you buy, plan to hold. Warren Buffett still lives in the home he bought 52 years ago - for $31,500.  He is worth over $50 million. If anyone can afford another home...?
  • Mortgages should have fixed, affordable payments. Simply stated a reasonable down payment with reasonable monthly payments. Not what many banks and lending institutions did that contributed to the current situation.

Third, if you really want to help yourself then help America. Buy American goods for your home. Dian Sawyer recently ran a Special Report Made In America.  Imagine if every American bought only American produced goods for as little as 3-6 months. What impact would that have on our economy? How would that affect your job, jobs of friends, jobs of family? How many jobs could be created? Something to think about next time you go shopping.

Interest rates are low, and won't stay that way forever. Home prices are low, and will eventually increase. If you've ever been in the situation where you thought if I would have, I could have, oh my I should have. That day is coming to the real estate market. There will be some buyers who will be too late and will have lost out on the opportunity. What I tell a lot of buyers is take what you are paying and add to it what you feel you can afford. Put that additional money into savings for 3-6 months. If you can do it without needing to touch that money, then you know you can afford that monthly mortgage payment. If you can't, better to find out now and adjust. Need first, want last. Want vs. need is a tough battle. To survive, it's a must battle to win. So, to buy or not to buy? If you can do it, then think like Nike, Just Do It. If not yet, set a strategy and time line, stick to it, and when the time is right contact a REALTOR® to get started on searching for your home. 

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