In the face of our current financial crisis a question that arises rather often is one of whether or not this is a reasonable time to buy a home. Should we? Or should we not?
All other concerns being satisfied, this is not only a reasonable time to buy a home, it is an excellent time to do so. In fact, I would say that it is an important time to do so if you are in a position to do so.
Certainly there is a need to be cautious. But in my opinion, after being sure you have considered the potential pitfalls, there has never been a time when it made more sense to buy a home.
First the caveats. They are rather obvious, but still should not be taken for granted. It is hard to say that any job is secure in these days, but if you are going to make a purchase like a home you want to know that you will have income enough to pay for it. Ask yourself how secure your job is.
In addition, and for most people this is related to the previous question, do you plan to continue living in the same area for the foreseeable future. This is even more important now than ever before because the market is not dependable from a seller’s point of view. I know a family that put their home on the market more than a year ago and has had no one to even look at it as of now!
So what makes it so important to consider buying a home at this time? Simply this. Even aside from the fluctuating but eventually rising cost of fuel and its effect on the price of food and other commodities, the fact that the US government is printing billions of dollars to purchase their own debt virtually guarantees significant inflation on the horizon.
Not only so, but the fact that people over spent for so many years and that this economic upheaval is an adjustment to that reality means that on average income is going to deteriorate to a degree, or at least grow slower than inflation for some time.
It is highly likely that the cost of homes will more than double over the next ten years. If you are a renter, while rent may be lower for a while, you will be paying a lot more money for rent in the future. If you buy a home you will have fixed payments until you pay off the note, then nothing. The best course should be clear.
