Posted by:

CJ Harrington
Keller Williams Realty
www.cjharrington.com
cjharrington.crs@gmail.com
440.336.0612

Date: 08/03/08

Conventional wisdom says that you need to stay in a home a minimum of five years in order to ensure that you recoup your purchasing costs. Yet, this advice does not always apply.

Honestlt, market conditions play a huge part in any decision about when to buy. Housing market values have varied widely from region to region in recent years, and Ohio has seen its real estate prices go into negative territory in the last year.

So, do not buy high and sell low.  If the market is softening or has hit its peak and is heading south, you may want to wait on your purchase.

On another note, the top three reasons people file for bankruptcy are change of job status, divorce, and unforeseen health expenses.  So, if you face any of these challenges and do not have a financial cushion, this may negatively impact your ability to pay a mortgage.  As a relut, life events dictate your readiness to buy now or to wait for a little more stability in the market.

Still, there are signs you should buy right now.  One, you will be moving within the next five years. Next, you will be having kids soon.  Yet another is you be making a job change soon. Finally, if you recently filed for bankruptcy or is your credit score below 630, and you are experiencing other life-changing events like illness, marriage, divorce, or breakup, you may want to wait.

So, aside from life events contributing to your decision, getting your financials in order before you begin your home search is necessary. In result, if your debts are growing steadily and you do not foresee an increase in your income, you are putting yourself in greater financial risk.

Still, remember, you need to go over this with a financial counselor or mortgage broker before you start hitting open houses.

Also consider, if you are willing to buy a home that needs a bit of work and, over time, you can afford to get it done, your home could appreciate faster.  Also, if you are willing to take on a roommate or renter, you can also soften the expense of a mortgage. Still, remember buying a home is a risk, and always analyze interest rates and tax effects. 

For More Information!

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www.cjharrington.com

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Or call my cell phone at 440.336.0612.