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Tuesday, April 26, 2016

Now May Not Be the Time to Buy a Home

I just finished reading an article espousing the benefits and urgency of buying a home in 2016.   As a Florida real estate broker I can see the benefits quite clearly.
  • Prices are rising so the amount of home one can purchase decreases as time goes by.  
  • Interest rates are at historical lows.  An increase in rates is inevitable and can decrease the amount of home that can be purchased (or at least increase the mortgage payments).
  • Rents have been steadily rising over the past few years so a mortgage payment could be more attractive.  One recently published study says buying a home is 33% cheaper nationally than renting a home.
  • And then is the tax benefit to be gained by paying mortgage interest instead of someone other than your own house payment!
Still, now may not be the right time to buy a home.

Buying a home is a major step that requires long term commitment to ownership.   

Is your lifestyle subject to change in the next year or two?    Could the mortgage be too restrictive in the future as it takes five to seven years to make buying a home a good decision.  Or, if you move away, are you willing to be a landlord or pay some to manage your property

Could there be changes in your family composition (marriage, children)?  What about your career and employment?  Are you stable in your position or eager to move upward at a different location? 

Finally, do you have the funds set aside to manage to closing costs and down payment?  Are you ready to manage the maintenance issues that come with ownership or do you prefer someone else take care of issues and upkeep?

Whether or not the time is right to buy a homes comes down to your personal situation

Sure your lender or a local real estate agent can give you advice but it all comes down to you.

If you decide it is the right time to buy a home, contact a local agent, get your mortgage pre-approval and move forward.

If you are considering buying a home in Melbourne, Florida, please feel free to contact me for help.  Call or text me at 321-693-3850.

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