First time home buyers looking for that flashing neon sign that tells them now is definitely the time to buy, might as well be cruising the Strip in Las Vegas. because it’s easy to go into sensory overload and not know the right decision.
There are signs flashing everywhere that say “BUY!” or “are you nuts? DON’T BUY NOW!”.
So how can you know for sure which directional guarantees the right decision?
As with any investment, there are no guarantees when it comes to investing in your first home, but you can make a smart decision if you can read the signs.
Recently the Wall Street Journal published an article about the “5 signs that say buy”. While the WSJ gives their perspective from 30,000 feet, I thought a “closer to the earth” view would be of more help to you.
Here are 3 signs that say “BUY”
1. Jobs – Jobs are important, and nationwide statistics say that more people are finding employment, but what’s more important to first time home buyers is THEIR J-O-B. If you feel your job is secure and you’ll be able to make the mortgage payment, then the combination of affordable houses and low interest rates are clearly a sign to “BUY”.
2. What’s going on in the rental market? – First time home buyers have choices: they can continue to rent (paying their landlord’s mortgage) or start paying their own. As the demand for more rental units increases (largely from displaced homeowners) we’re experiencing an upward pressure on rents in almost every market across the country.
A recent article in CNNMoney predicted:
“Renters beware! Double digit rent hikes may be coming soon”
Renters in San Diego, according to CNNMoney, may soon be facing rent increases of 31% over the next few years, according to CNNMoney.
“Hmmm? Rents are going up and mortgage payments going down, what kind of sign can that be?” When the cost of renting exceeds the cost of owning, that’s clearly a sign to BUY!.
3. Mortgage availability – The WSJ talks about the availability of mortgages like it’s a commodity that’s flying off the shelves and may not be available soon.
Fact is, there are TRILLIONS of dollars available to qualified buyers. More important to you is the availability of first time home buyer programs and incentives. Some of these programs do have limited funding and are often available on a “first come, first served” basis. But, when available, they provide the assistance to help thousands of first time home buyers become home owners. As long as these funds are available for qualified first time home buyers, that’s clearly a sign to BUY! Readiness to buy is a very personal decision, so if you’ve decided you’re ready, then it’s time to read the signs.
Greg is a mortgage professional with more than 30 years experience helping first time home buyers reach their goal of owning their first home. Greg is also founder of FirstTimeHomeBuyersNetwork.com an association of Real Estate and Mortgage professionals with the experience and expertise to help first time home buyers find the right first time home buyer programs and incentives available in today’s complicated real estate market.