As other agents are likely, I get a lot of calls from potential buyers of real estate, and often people ask the same, very typical questions. One of the characteristic ones, at what exact moment is it worth buying a house?
The idea for many is to wait for a good moment and buy real estate when the prices for it go down significantly, or the interest on the loan turns out to be extremely small. It would be all the more wonderful if both of them happened at the same time at the same time (although, in my opinion, this is hardly possible in reality).
Adhering to this position, some people are ready to wait a year or more, if the expectation is able to help them, in terms of successful acquisition of housing. The first thing I would like to do is express my opinion on the issue itself, as such. The fact is that he immediately suggests that the person asking him is not yet a motivated buyer at all. Simply put, there is no particular need to buy a home, which means that such a person is unlikely to be seriously engaged in such a business. Judge for yourself if, for example, I need a car (otherwise I’m not able to get to work, I won’t have such an opportunity), then I’m unlikely to have the time and desire to study the state of the car market, waiting for prices to cars will become extremely low. I’m sure that everything will be completely different, and on the contrary I’ll grab the first more or less decent car that meets the limits of my budget.
There is also another, quite different from the first, reason why people are ready to try to buy time. Very often, serious clients are ready to buy a house on the move, but after viewing the first 5-6 houses they change their position dramatically. The buyer simply becomes clear that the budget does not allow you to purchase what you want. A trivial standard situation: “I don’t want to buy a house that I can get, but I still can’t afford what I want.” At this very moment, as a rule, the thought that seems quite reasonable comes to postpone the purchase until better times.
It is also interesting that the mentality of a compatriot is such that in most cases a community representative wants to buy a detached house, or at worst, a half-house (semidetached). Perhaps this is due to psychology, which is also arranged in such a way that it is advisable to buy once and for all, or at least twenty years in advance. Well, perhaps you will be interested to know that according to Canadian statistics, on average, people in the country change their place of residence about every five years. Understanding, however, is not difficult. Typically, real estate in developed capitalism is a fairly accurate indicator of the social and financial situation of the consumer. With a significant shift of this indicator in one direction or another, Canadians simply move to housing, more appropriate to their current financial condition.
As a result, for many, the main argument to postpone the purchase is the desire to save more money, and then apply for real estate of a different level. Everything is clear, the more valuable the fur, the more expensive it is and, accordingly, vice versa. The idea of saving more funds is great at first glance, especially if you take it as a fact that during this period no other events take place. In fact, everything is much more complicated and below I will offer several ideas of what exactly you will encounter, who want to wait a bit.
So, in order to buy a more expensive house, we will have to postpone at least an additional 40,000 – 50,000 dollars, and this, in turn, is a very difficult task for most people. The most interesting thing is not even that. Do not be surprised if, after incredible efforts, you save up and after some time you have to buy something that has already been rejected once. The only difference is that for a similar house this time you have to pay more, for those same 40,000-50,000 dollars. Why? I think you yourself guess why. If not, then it does not matter, and a little lower we will return to this idea.
Another problem that I do not want to remind once again is the age factor. Alas, we are not getting younger and this, unfortunately, is the very iron fact that no one will challenge. The standard loan repayment period is 20 – 25 years, and if the buyer’s age approaches, say, 40 years, then the payer will be able to get rid of the “put” loan at the age of 60-65. Agree, it is worth hurrying to approach the retirement period of life with a loan paid. If your age exceeds 45-50 years, then the decision to buy a property, in my opinion, should be taken even faster, and you should also think about how to pay your mortgage more actively. By the way, do not calm down and those who today are no more than 30 years old. You can say that there is still a lot of time ahead. Perhaps this is so. In your case, this means that, having freed yourself in advance from financial dependence on paying home, you can spend money on something much more pleasant for yourself.
When is the best time to buy a house?
So, buy real estate today or put off such a task for a year? Let us return to the debts, which we stopped at the end of the previous part and which cannot be avoided. In fact, regardless of whether we like borrowed money or not, without a loan, as a rule, a house cannot be bought. In connection with the foregoing, I do not see what in this sense can change in a year, two or more. In general, as you see yourself, it makes no great sense to delay buying a property, in fact, no.
It is worth saying that the majority of people, for the most part, agree with this statement, and only approach the calculations somewhat from the other side. Here is a standard example for you: “If I buy a house and have to bear noticeably increased housing costs, isn’t it easier for me to pay rent and at the same time save money for a larger payment (down payment), in order to claim the best quality housing and borrow less money”.
Indeed, it is often a simple situation to understand such a position. Of course, I want to collect as much of my own money as possible, invest them in buying a house and, accordingly, pay less for the bank for interest. Many people also often say that the first years we all do, that we mainly pay for the bank’s interest, and that, by the way, is true.
Well, let’s compare two situations. You buy housing and, accordingly, you live in your own home. On the contrary, I continue to rent housing and save money for a future purchase.
From now on, you have your own house, where you and your family are the owners, but I continue to live in someone else’s housing.
You have already begun to repay the loan, and even if the first years you basically have to repay the interest of the bank, the process of getting rid of the loan has already begun. I still pay rent, and my money, like a year and two ago, goes away. Only after years will I finally make a decision to buy real estate and only enter the same path that you have successfully walked for several years.
Agree that your living conditions, for sure, are much better than mine. Your glorious family lives either in a separate house or in a half-house (semidetached), possibly in a town house, where there is probably a small piece of land, 3 – 4 bedrooms, 2-3 bathrooms, your own garage and something else to boot. I, as you remember, rent an apartment where there is almost certainly none of the above.
Over the years, you started to do something at home, perhaps remodeling something to change it to your taste. It is unlikely that it would occur to me to change anything in the apartment due to the fact that housing is not mine, which means that there is no point in wasting time, money and own efforts. It is no secret that most often furniture for rented housing is bought for reasons not of what is more like and suitable, but only for reasons of cheapness, so that later it would not be a pity to throw it away.
Most people, too, dream of the greatest possible right to privacy, because that is how we are all arranged. Indeed, I sometimes want to retire from other people to be in silence, spend time with my family, do something for fun in the backyard, or just lie back after work. Agree that, for example, relaxing after hard work is much easier in your own home than in a building in which, in addition to you, another 2-3 hundred families live. Talking about flowers in your own garden here is not at all necessary.
Usually, those who decide to take the path of saving money insist on the following: “We are ready to put up with all the disadvantages of living in a rented apartment, because we believe that saving more money in the end is still more profitable for us with the subsequent purchase of real estate.” Well, let’s look together profitably or not profitably in reality to save a large amount of money to buy a house.