With what is currently happening in the market, will you buy a house now? So many buyers find it hard to decide if they will buy now or delay the purchase in the future. Below are some items to consider in making a decision on when to buy.

Short vs. long length of stay

If the buyer intends to live there for a short period of time like less than two years, we would not recommend that he/she buy the house.

Upon moving out or selling the house some expenses will be incurred. From the sales, the sales commissions will be deducted. As most home owners, they hope that the appreciation on the house can cover the sales commission plus the down payment and the closings cost on the new house.

So if the time is so short, the value of the house may have not appreciated yet. Not enough to cover the sales commission, down payment and closing cost on the new home. So buying a home and expecting to move before too long is risky, especially in an unsure market. This should be clear with the buyer.

However, most buyers do stay in their houses for more than seven years. If this is the case, it is more logical to buy rather than rent. This holds true whether the market is down or up.

Owning vs. Renting

Owners can take advantage of the deductibles like the property tax and mortgage interest. Renting is just throwing money away. Renters don't get to reduce their income taxes by itemizing deductions like property taxes and mortgage interest.

A renter is limited on what changes he/she can make to home. An owner can paint the living room, tear down walls, or improve the kitchen or bathroom. An owner can change light fixtures, garden and landscape. He/she can do whatever he/she wants that makes the home a comfortable place for the family. It is not a temporary place to sleep and eat until a house is bought but “it is a home”.

Interest rates

Interest rates are very low right now. If the buyer waits, the interest rates could be higher. That means the monthly payment could be higher too. No one can exactly predict rates that far in the future, of course, but rates are very low right now.

Wealth accumulation

The easiest way to accumulate wealth is through home ownership. Three out of four people have more equity in their home than assets in retirement plans, stocks, mutual funds, and savings. Though no one can guarantee that the property will appreciate, over time it generally does.

Buyers’ market

Best of all this time, inventory is high and there are lots of sellers out there right now. If you make an offer, ask for incentives in buying the particular home. Incentives such as an even lower down payment, straight discount or rebate on the down payment, appliances, etc.

To arrive at a more informed decision, talk to a real estate agent and ask for advice. Ask them what the market is like in area.