Being secure in the face of such an important decision, such as acquiring a property, is the best thing you can do since the best time to buy a house is a long-term commitment that involves time, money and effort.
When you decided that you wanted to buy a house. We all know that this is a process that takes time and that it is a great financial transaction, and although there are great advantages in making this decision, the biggest question is: When is the best time to buy a house? Because time is important when it comes to a purchase that will change your life. Observe some of the factors that can determine if it is the right time to buy a house, or if it is better than waiting a little longer.
Your financial balance for the best time to buy a house
Buying a house will always depend on your figures. Since it is a big business, there are many payments that you need to take into account. This will show you if you are ready to buy or not.
- Initial payment: If you are looking for a mortgage to buy a house, having the cash for the down payment is essential. For conventional loans, the down payment is around 20% of the property price, but there are still some lenders who ask for less down payment, as low as 5%. Check the down payment assistance programs, it can be useful if you do not have enough money saved for it.
- A good credit score: Your credit score is something that really matters in the financial process of buying a home. This is a number that lenders will use to determine the risk of lending you money and can vary from 300 to 850, the higher the score, the better. If you do not have a credit history at this time, it is important that you get it first.
- Monthly mortgage payments: Knowing how much you can pay monthly in the mortgage is another factor that says if you can best time to buy a house now or if you are not ready to do so. This number depends on your income and your debts: making that balance can help you calculate the amount of your monthly mortgage budget. Read more: 5 tips to decorate your house for the first time
Current market conditions
Keep in mind that the housing market goes through highs, lows, and bubbles. So you will not only have to have a positive financial balance, but the current conditions of the real estate market will also tell if the time is right to buy. These are the current factors that indicate the state of the market:
- List of houses: Look carefully at the offer of houses in the area that you are interested. If you see that most houses have been stuck in the market for six months or more, then it is a buyers market and you can get good prices. But if, for example, the properties are sold in months or even weeks, it is a seller’s market and may not be the best time to buy a house due to high prices.
- Interest rates: These rates for housing loans also tend to fluctuate depending on current market conditions. The current interest rates are low, which means that it is the best time to buy a house before the rates begin to rise again.
Why is it best time to buy a house?
Best return on investment. Throughout the year we have seen green shoots in the field of brick, especially in regard to real estate, which has been unmasked as the products with the best return on investment: if in 2015 they gave 7.2%, in 2016 that index has risen to 7.7%. In 5 years the price of housing will rise by 25 %. In the section of houses, there are multiple signs that are signaling that real estate investment is again a good alternative; a reality that returns with strength. To show an example. The real estate manager CBRE Global Investors has it clear and is categorical in its statement: within 5 years the price of housing will have increased by 25%.
If you are moving in the next five years
Although I always say that your first house does not have to be your only and last home, certainly if the time you are thinking of living in it is five years or less because later you are moving to another city or country, it may not be the best time to buy a house.
Conclusion: The best time to buy a house is today, as long as there is a need and you acquire a property according to your time of life with the appropriate financial instrument. Now you have all the information you need about when is the best time to buy a house but, also, about important aspects to take into account before doing this process. With all these tips you can make sure you make an interesting, beneficial and safe operation for you.
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