I often have clients ask "When is the ideal time to buy a home"? In order to appropriately answer the question with their best interest in mind I will have to see why they ask. Usually the response is about interest rates, prices, or something like "My uncle's, mechanic's, best friend that that used to be a Realtor said..." My short answer is "When you are ready." but what does that mean? How stable is your employment? Do you intend to stay or hold on to the property for more than 5 years? Do you have adequate reserves in case you were to be let go from your current employment?
In a recent Forbes blog post, multimillionaire hedge fund manager John Paulson declared that today’s record-low interest rates made this the best time to buy homes in fifty years. “If you don’t own a home, buy one,” Paulson said. “If you own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.” Interest rates are a huge part of the equation and with the debt crisis looming it could send rates upward making home ownership unaffordable again.
The Johnson Real Estate Group serves Woodbury, Oakdale, Cottage Grove, and the entire Twin Cities Area including Western Wisconsin! We are dedicated to providing a superior experience when buying or selling your Twin Cities home! Contact us at www.tjreg.com to find out more. Chart from KW Realty blog.