Should I buy….or should I wait?

G ood question….and the answer is:

It depends….

If you’re looking for vacation property or a second home…and you have cash or a fair amount of equity in your primary residence, then the answer is YES!  The market is soft and the inventory is very high….and many sellers are willing to negotiate and you may be able to buy property that a couple of years ago, was way out of your price range.   If your job is secure, you can refinance your primary home at around 4%, and buy your vacation property for cash.  Later on, if the need arises, that property can be sold with seller financing and give you a nice monthly check to supplement your retirement income or social security.  In the meantime, you have the tax benefits of having the mortgage on your principal residence and a wonderful, relaxing “getaway” in the islands for you and your family to enjoy.

If you’re renting and paying over $1000/mo, have a good job and average or better credit….the answer is YES!  You can buy a great home at a wonderful interest rate and begin building equity right away.  When the real estate market starts to improve, you will watch your investment grow and you’ll also have the opportunity to improve your property and build additional “sweat equity”.  Which would you rather do….invest in your own place or pay someone else’s mortgage for them?  At today’s interest rates, you’ll be amazed at how much home you’ll be able to afford and some of the loan programs will enable you to buy with very little down.

If you’re in a “starter house”, and want to move up to a larger home and you have a fair amount of equity, then the answer is YES!  You may need to be flexible in your price and your home will need to be in tip top condition to sell but the market conditions are wonderful for you to find your next (and bigger) home at a very good price and probably a better interest rate than you’ve been paying.

If you’re wanting to “down-size“ and don’t have a lot of equity, you’d better WAIT.  Our current market is pretty tough for home-owners in your situation.  Try to use this time to improve the condition and appearance of your home so that when our current inventory decreases, you’ll be in a great position to put your home on the market and get it sold quickly.

Whatever you decide to do, we’re here to help you!  Give us a call and we can discuss your options…..

 

Daylight Savings Time ends…November 7^th….Remember to fall back!

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