As a newly wed couple, once you decide to buy your first home, figuring out the right time to invest can be tough for many. From a purely real estate sector point of view, it’s common knowledge that there was a great recession in 2008, but since that point in time, it has slowly been bouncing back. During recovery phases, prices of properties will be low but will continue to grow with time. In past posts, we’ve covered why it’s a great time to make a housing investment, but before jumping right into investing in a property, here are some points to keep in mind:
- The right time is all about the right location. So far in 2013, successful real estate investment has really come down to location. Some specific geographic locations are doing much better than others, and you’re finding investors investing in other areas (LA, SF, Rochester, Phoenix are just a few) outside of the usual “real estate hot zones” like NYC or Miami, FL.
- Is it the right time for your lifestyle? As you think about your future, we’ve already established that the present market is bullish, but your own factors will come into play. These factors should mesh with your current place in life for each of you and your future goals both individually and collectively. A good example would be that if you have a stable career, a job that pays more than enough to cover living expenses (so you can cover emergencies/retirement), and you don’t plan to move within the next 3-5 years, then it might be a great idea to make the investment!
- Is it the right time financially? Another aspect of the “right time” is financially. The right time financially for one person may not be for another. Maybe you might have credit card debt or student loan debt. The other thing you need to keep in mind is that there are a myriad of good deals. Don’t get emotional about it. Do your research, negotiate in a calm and collected manner, and don’t get run down.
- Be patient. Be patient, don’t rush, but do your due diligence. There are many homeowners who have been itching to sell, but didn’t want to sell at such a low price. The inventory for great homes will soon start to rise up. Quality properties will hit the “for sale” market and you should be ready to identify what you want, be vigilant of when it hits, and move fast to finalize the deal!
As always, prior to buying, you need to figure out the right investment solution for you as a newly wed couple. Understand what you have and what you need, and then create a plan and put it into action. Get in touch with a financial advisor as well as a business and real estate advisors to work with you and find out what works best for you.
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