To Buy or Not to Buy…WHEN is the Question
Posted by David Zadareky on Friday, August 12th, 2011 at 8:23pm.
“Is it the right time to buy?” prospective home buyers in Alexandria may ask. For many the answer is “Yes!” In spite of (and even sometimes because of) these times of grim headlines and statistics, there are awesome prices for excellent homes here in Alexandria and the Greater DC Area.
No matter how great a deal is, however, wise buyers consider how financially ready they are for the commitment of a mortgage. Is now your time to buy? Ask yourself: How reliable is your income? What is your debt to income ratio? If these have good answers but you still are nervous, you can have more confidence home buying if you have:
- A specific emergency fund set up to survive multiple months without income should there be a job loss or other disaster.
- A monthly income that not only covers mortgage and living expenses but the other costs of homeownership – property tax, insurance and sometimes homeowner association dues.
- Designated funds, or at least a plan, for the continual costs of upkeep, repairs and landscaping.
According to articles this month in both Daily Real Estate News and the Los Angeles Times, mortgage rates are extremely low while housing values have also dropped to be incredibly affordable. Yet some of those hesitating to buy are concerned about taking on a mortgage while the national economy seems questionable. Many buying Alexandria homes, however, look at statistics of previous years and realize these cycles happen and values will continue to go up and down.
If the investment factor is your main attraction to home buying, it is common knowledge that unless you plan to keep your home at least three (and maybe five) years, it is hard to get your money back out of it.
Not everybody’s reasons to buy are about financial gain. Many of us place great value on:
- A place where your kids (and pets!) can cut loose in the yard without any landlord getting mad about mangled rosebushes.
- A place where you can paint the walls the way YOU want them painted.
- A place where you can install the kind of stove the chef in your family has been longing for.
- A place where no landlord is going to kick you out because he has to sell the place.
- A place that you can pass on to your children as an inheritance… for them to either live in or sell according to their future needs.
Here are a few more perks to homeownership that many don’t consider: Some employers and lenders give greater consideration to homeowners because they are considered more stable and reliable than renters. And… there are actually statistics that show more children of homeowners graduate from high school than those who are not home owners.
While owning a home is not a good-luck charm for job promotions, credit and successful children, we can’t help but notice that all three require long term commitment to responsibilities, which is a major ingredient in home ownership.
We at Re/Max Evolution are committed for the long term to meeting the needs of Alexandria buyers and sellers. If you’re in the market to make a move in Northern Virginia, you owe it to yourself to work with an exceptional real estate team committed to Going Beyond Your Expectations. That team is RE/MAX Evolution & David Zadareky.
Blog Tags
Print
ShareBe the first to comment on this blog entry!