There are so many reasons people buy homes or move to a different home. Some people base their decisions on logic or their needs. Other base their decisions on emotions or what they want. There's no right or wrong reason. What matters is what is important to you.
If you need a home, want a different lifestyle, are moving for a job, are renting, rightsizing, just want a new home or searching for other reasons. It can be a good time to buy as long as you keep things in perspective.
Personal reasons to buy a home now:
- Can you decorate your current home to make it your own space?
- Does your home offer the space you need? Do you have work at home office space?
- Do you have space to entertain family and friends?
- Is your home too large? Are you conditioning and paying for space you don't need or cleaning rooms you no longer use? Is your home a glorified storage space?
- Have you outgrown your home or is it too small?
- Do you have space for a pet or perhaps farm animals?
- Do you have or need a workshop?
- Is your home peaceful or can you hear neighbors above and around you?
- Do you live close to your employment? Or the airport if you travel?
- Do you have the outdoor living space you desire?
- Are you in the school district you want?
- Would you like stability in your life?
- Are you having a change in family such as marriage, divorce, children, or parents living with you?
- Does your home fit your lifestyle?
- Do you live close to people or things you frequent?
- Do you have the climate you want?
- Do you want to be close to your children or perhaps an aging parent?
- You just want something different than the home you already have?
Financial considerations for buying a home:
- Can you qualify to purchase a home?
- Is the right home available to you at this time or do you need to save some more?
- Are you paying someone else's mortgage or paying toward your own principal?
- Are you tired of rent prices going up?
- Are you tired of moving every year or two and paying moving costs?
- Are you taking advantage of the low interest rates?
- Are you able to take advantage of any tax breaks homeownership offers?
- Are you saving towards your retirement?
- Are you building wealth or other streams of income?
- Are you being transferred for your job?
- Do you need to live where property taxes are lower?
- Is it time to retire and enjoy your golden years?
- Do you want to build a real estate investment portfolio?
- Do you need a place to live?
- Do you want to take advantage of the low interest rates?
When it isn't a good time to buy a home:
- You have a poor credit score.
- You can't qualify for a mortgage.
- You have no Savings.
- You have too much debt.
- You move often and you can't afford to keep property as a rental.
- You aren't prepared to take care of a home and possibly a yard.
- Your employment or income isn't stable.
- You're in an unstable relationship.
- Just because everybody else is doing it.
Chances are, you searched this topic because of the crazy Real Estate market we're experiencing. Buying a house now can make sense if you're smart about it.
Regardless of when you buy, it is wise to make sure you can keep a home for 7-10 years so you can sell during the best cycle of the Real Estate market. And of course, you'll be buying in the top Real Estate market as well. That means making sure the house will fit your life pretty well for the next 7-10 years OR you can keep it as an investment property. That doesn't mean you can't sell in less time, it is just something to consider as a safety net.
If you're selling a home at the same time, chances are you're buying in the same high market that you're selling in.
Keep in mind, people often wonder if they're buying at the right time or the wrong time. There is no crystal ball. History tells us home prices will go up and down and home sales will go up and down. Ultimately they tick upwards.