This is a fantastic time to buy a home. Homes are more affordable than they’ve been in decades. Here are some issues to consider if you are in the market:
1. How is your job outlook over the next five to ten years? This is a tough question that no one can adequately answer. It’s likely that your job will evolve into something much different than what you see it as today. If you are likely to move in less than five years, either via company transfer or to follow other opportunities in another region, you should consider carefully what kind of home would have the broadest audience for resale under those circumstances.
2. What are your family’s long-term goals? The most valuable part of any home is the family that resides there. As families grow decisions must be made that have a big impact on finances. Will one parent stay home with the children, or do both parents have to work to bring in enough income to provide for its needs? Mortgage payments are usually the highest line item expenditure in most families’ budgets. Keeping the payments at a level that one salary can afford is probably the single best thing a young couple can do to maximize their long-term financial options.
3. Make sure savings are a part of your budget. If you can afford to save 10% of your income and make your mortgage payments comfortably, than you can really afford to buy a home.