Time For A New Home?

In today’s market, it’s a great time to be a home buyer.  Interest rates are at an all-time low.  The job market is starting to improve and home prices are more affordable than ever.  So this may be the time to consider a newer, larger home.  This is also a prime time to buy investment property or a second home.  There are several things to consider however, before making this decision:

Do You Have Equity in your current home?

If you have equity in your home currently, you may want to use that to leverage the purchase of a new or larger home, or investment property.  Compare other homes in your area and what they’re selling for.  Consider the value on your property taxes and remember, this number is usually lower than the actual value of your home.  The best thing to do is get an appraisal which should include comparable homes in your area and their values.  Comparing your home’s value to what you owe on the home will tell you if you have any equity to play with.

Are You Employed?

If you purchase a larger home or an additional investment property, your payments are likely to increase or you will have an additional mortgage.  Property taxes will also be more expensive if you buy a larger home.  In addition, you’ll incur some fees for the closing on the home(s).  However, if you’re gainfully employed and you have a reasonable amount of savings, now is a perfect time for you to think about a better home or an investment property.  If possible, financial experts suggest you save at least 10% of your pay each pay period.  If you have 6-8 months of savings or emergency funds and your job is steady, you can really capitalize on the low rates and housing prices available today.

Added Expenses

With a larger home, you will undoubtedly incur larger utility bills so be prepared for that.  It’s a good idea to consider homes that have energy efficiencies such as energy saving appliances and good insulation.

Value

You’ll want to be sure that you are familiar with the area you’re moving to and educate yourself about the value of the homes there.  Check out the trend in the neighborhood, is it stable?  Are you considering a home that would be easily resold?  This question may be even more pertinent if you have a job that requires you to relocate at times.  A good real estate agent can answer many of your questions about the area you are considering moving to and the value of homes there, as well as how they compare to one and other.  They can also provide you with information on investment properties and rents in the area.

It’s important to be prepared and educate yourself when considering what is surely one of the most important investments in your life.  But if you have a good job and can handle the added expenses mentioned above, you are in the best market to increase your quality of life with a new home or your investment portfolio with investment property.  Happy house hunting!

Related posts:

1. Home Buyer – Affording a Home
2. Home Buyer – Home Inspections
3. Add Value to Your Home with Home Alarms
4. Home Buyer – Seven Steps to Buying a Home
5. Home Seller – Seven Steps to Selling Your Home