Have you noticed how the experts are always telling us that there's not just a right way to do things but a right time as well? You're supposed to eat your meals at specific times through the day when your digestion is supposed to be the strongest, exercise at the times your body is best able to deliver power, and you are even supposed to work at specific times when your brain is at its most alert. There's a right time to buy and sell stocks too. Is it any wonder then that they should tell you that buying real estate is a decision you’re supposed to take up at the right time?
Well, ask yourself this – is it the right time right now to sell real estate when home prices are completely depressed? But we aren't talking about the best market to buy or sell in. We're talking about the best time for you personally, to get into buying real estate.
Buying at the wrong time in your life could really make things unpleasant for you. For instance, if you haven't had enough time to get your credit score where it should be, if you aren't married yet or haven't decided on what part of the country to settle in, it might be a bad time to get into buying real estate. Let's take a closer look.
Income stability is the first thing you want to have lined up buying real estate. When people get into their first well-paying job and their company seems to be in great shape and business seems to be booming, they're very optimistic usually about their chances for the future. A home loan though runs to at least 10 years usually. That's a long time to depend on business success today. Basically, you don't want to get yourself into any long-term commitments before you completely sure that this super successful company you're working for isn't a dot-com bubble company or something.
It can be really hard to depend on a marriage lasting these days. But you don't really want to get yourself into a 15-year commitment with a house if you're not really married or in a long-term relationship yet. Get into buying real estate now at this point and you don’t know how things will change when you meet someone. You may want to move to a different part of the country or the world for instance. Basically, before you chain yourself to a house or anything, you basically want to make sure that the house is where you want to be.
Which brings us to another question to do with not being married. How you know how large the house is to be? Are there going to be kids say near future for instance? What are your other goals for the house? Do you want to be in the suburbs near where the good schools are? Do you want it to be close enough to your job that you could walk?
If you're telling yourself you could just buy the house as an investment and wait for the prices to go up and make you an awesome profit, you can't really be sure that's exactly how things will go in today's kind of market.
The point is basically, that buying real estate needs to be a hard-nosed business decision. It can't be a sentimental one.
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