Should you worry about that?

Is now a good time to invest in a new Tamaqua home – or does investment value matter?

While your home can become one of your largest assets, should you look at your purchase as merely an investment?

 

In the years since the “housing boom and bust,” the idea of a home as an investment has come more to the forefront. Some are looking harder at the possible appreciation than the more emotional aspects of owning a home.

 

Now, as home prices have risen and the economy is doing well, some experts are predicting that another bubble is growing and that like all bubbles, it will burst. Others are saying prices will level off and there will be no appreciation for a few years.

Should it cause you to postpone purchasing a home here in Tamaqua?

 

If you plan to move again in the near future, then considering short term appreciation is wise. In fact, remaining a renter might be the wisest move of all if you plan to sell within 2 or 3 years. Selling does come with costs.

 

If your goal is to set down roots, become part of a community, and enjoy the benefits of being King or Queen of your castle, then how your new home might fluctuate in value over the next few years shouldn’t be a factor in your decision.

 

After all, if it isn’t for sale, its value in the marketplace has no bearing on anything except possibly your net worth sheet. Great-grandmother’s antique Cameo might be worth a fortune, but if you aren’t going to sell it, its worth is only sentimental.

 

What should you consider when you’re deciding whether now is the time for you to become a homeowner?

• Do I plan to stay in this community for at least the next 4 or 5 years?
• Can I find a home I'll enjoy living in for the next several years?
• Will my credit scores allow me to take advantage of today's low interest rates on a fixed-rate mortgage?
• Will the payments on that home fit comfortably into my budget, so that I can continue to enjoy my favorite activities?

If you’re thinking of owning a home, your first step should be to contact a lender and become pre-approved (not pre-qualified) for a home mortgage loan.

 

This will tell you how much you can afford to spend based on your income, your down payment funds, the interest rate you’ll qualify for, and your other obligations.

 

Please do note that your lender may say you “can” spend more than you should spend.

 

He or she doesn’t know about the other things in life that may be important to you, such as sending the kids to a private school, taking an annual vacation, or even attending concerts regularly. Only you know the size of the payment that will fit comfortably into your life.

 

If you need a lender recommendation, get in touch. I can give you the names of several lenders who have served my clients well.  And when you’re ready to begin the search, please get in touch again. I’d love to help you find that “just right” Tamaqua home.