I see others have asked this same question, but not in the same situation as me.
Pros:
Lots of homes to choose from. Interest rates are still good. If I buy before July 1, I can take advantage of the $7500 first-time home buyer credit (realizing that I do have to pay back over 15 years). I have lots of money saved up – the price range I’m looking in, I figure I can put around 26% down for a down payment yet still keep a nice cushion left in my checking/savings combined. I have a stable, full-time job with good benefits. Even in the case something bad were to happen, there a lot of jobs in this area with my skills. Oh yeah, and I plan on staying in this area. I may be single, but so far a husband isn’t even close to being on the agenda. I have crunched the numbers and once my car loan is paid off, which I should be able to pay off early with the help of the $7500 (in 3 years instead of 5), I figure I should be back to having a monthly “savings” (income-expense) of more than I do now.
Cons:
The economy — despite my good, financial situation, people tell me I should still wait — at least until after the election, maybe longer. I’m in Madison, WI, by the way, one of, if not the highest, priced area in our state, but not nearly as bad as CA or anything.
What does everyone else think?
Yes, I do have excellent credit history. As for the car loan, the way I see it, is I can wait 5 years to pay that off and then buy a home and who knows how much homes will cost then or what the rates will be, or I can use the $7500 from the first-time home buyer credit, to shave off 2 years worth, and be in an even better financial situation than I am now, after it is paid off in those 3 years. Oh yeah, and I am renting now – I have been renting for 4.5+ years now.
Oh, btw, the car loan is a 5 yr. 0% interest car loan. I did it that way instead of paying the whole thing down, so that I wouldn’t make a huge dent in my savings, and wouldn’t severely affect a down payment for a home in the future. Besides, the home I’m currently looking at is well maintained, has newer windows, roof, siding, etc. and for the first year of ownership, I would still be able to save 25% of my after-tax income – it would only increase after that. I’m simply afraid that if I wait, and home prices increase, interest rates increase, it’ll cost me more in the long run.
Go for it!
With your careful planning you’ve done, you should do well buying a home… With some many facing forclosures unfortunately, I’m hearing it’s a “buyer’s market”…you may be able to find some good prices for great homes. Good Luck!
Do NOT wait until what politicians are doing to maintain your life. That’s part of what has us in this trouble now. Everyone is abdicating their responsibilities as adults.
Your fundamentals appear sound. If you have 25% or more down payment, can get a 15Yr fix mortgage, have a emergency fund of 3-6 months expense saved and don’t owe other debts you are good to go. And, it’s the best buyers market your gonna see in your life time. The only thing that concerns me is the car payment. Clear that up ASAP and in the future save up a buy good, used cars with cash. New cars and car payments keep people poor. I assume you have no credit care or other loan debt?
Go for it.
This would be the perfect time to invest in first time ownership. If you were selling another house, maybe not..but assuming you are renting (or living with your family), you should be able to buy a house at a great price that will go up in value at some point. You said you plan on staying in the area, but in the same house? If yes, then definitely do it. You are in a good financial situation. Lots of luck.
prices of the houses on the market now even though they are a lower price today than they were 4 yrs ago they are still overpriced why buy now when you can get more for your money in a year i would wait personally my husband and i have put off buying a house earlier this yr when we were really tempted to and thank goodness we did because the prices of homes are falling and the taxes on them are going up
There is no rush, but what will happen with rates is speculation. If anybody knew, they wouldn’t tell you because they could make millions by selling the information.
On the other hand, if you are ready to buy and find a place that you like and can get your price on, why wait? All you would be doing is losing the tax benefits you might accrue this year.
Good luck with your purchase whatever you decide to do.