many more condo-for-sale signs posted in lake oswego – DSC01710

Originally uploaded by sean dreilinger

It’s a question only YOU can answer. There are incredible deals to make today in purchasing real estate. There are also some fantastic rental rates.

Do the analysis and then take a gut check.

1. How much do you have in savings?
2. What are all the reasons why you want to buy?
3. Are you in a career with growth potential, stagnation or elimination?
4. Do the numbers make sense — income minus mortgage, taxes, insurance, homeowners association fee and upkeep? Tax write offs and appreciation are a bonus.
5. How long do you expect to live in the property?

If the numbers make sense, how do you feel about it? That’s the intuitive part. You know when it feels right — and also when it’s not the best move.

Wilted Bride (Outtake)

Originally uploaded by Special

According to the Joint Center for Housing, there are reasons why single women buy real estate at more than twice the rate of men:

1. Incomes are growing
2. Financial independence
3. More women are graduating from college
4. Women are living longer than men
5. Women are marrying later in life — if at all
6. Availability of mortgages
7. Women seek a sense a permanence and security through their home and still want to ‘nest’ married or not.

What’s your reason?

June Fletcher writes, in an article in the Wall Street Journal, about 24-year-old Brendt Montgomery. He shares his experience in purchasing a distressed property at a bargain price – or so he thought.

Here’s how his search started out:

After looking around for a day, he quickly found a condo that had been repossessed by the bank. He gave it a quick tour, made an offer and then embarked on a short vacation. While he was gone, a bidding war erupted, and spurred by the competition, he upped his bid to $143,100. His offer was accepted, and as soon as he returned, he signed a 33-page contract without really reading it.

Clearly one day is not enough time to search for a property – even if you’ve already logged hours with your internet search.

See what happens to him:

After paying $2,000 for an earnest money deposit, plus $250 for an inspection and $85 to the condo association—but before the deal closed–he again toured the condo.

There were problems: dirty carpets, mold in the air conditioning system, holes in the wall. He had second thoughts about how secure the first-floor location might be, and realized that the north-facing windows would never let in much light. “It was a little depressing,” he says. “I realized I’d acted hastily.”

The $8,000 tax credit is attractive, along with foreclosure pricing. But, to make sure it remains attractive, you’ve got to keep your head about you. (See previous post!)

tea

Originally uploaded by mohawk

Don’t get caught up in the bidding war frenzy that’s taking place in some parts of the country. You could lose your head.

Do your due diligence.

And have some tea and biscuits.

But now, I’m back! Watch for new posts.

She bought.   Or rather, she put in a contract which, after some negotiation, was accepted by the Sellers.  She’s getting the property she wants — neighborhood, size and amenities — for a fantastic deal.  Plus interest rates are so low that it’s well within her budget.

Are you sitting on the sidelines?  If so, what are you waiting for?

House in Phoenix

My friend, Janet, who lives in Phoenix is planning to buy a house for herself.  Her last two purchases have been investment properties.  This one she’s going to live in.  Janet is very practical, but

“I feel very emotional about this,” she says.

Right.  Is IS emotional. But as long as you throw in some common sense, the decision to buy could be right for you.

Janet is doing it right. She:

1. Already owns her current home outright.
2. Has her emergency fund.
3. Is buying within her financial comfort level.
4. Is planning to live in the house for many years.

She’s working her plan.  It is scary though.  We’re talking about Phoenix –  property values have gone down tremendously in the past year.  There is a possibility values may continue go down in the next year. It won’t matter to her because she’ll still be in the house when they rise.

If you are thinking about buying, are you working your plan?  Are you keeping your wits about you, while at the same time realizing it is emotional?

It’s a bad market because — well you know the reasons for that.  No need to focus on more negativity.

You know this is the right time for you to buy if:

• you’ve been saving your money
• you believe your job is fairly secure
• you expect to own the property for at least 5-7 years and
• you have a 6-8 month cash reserves in your emergency fund.

Is it your time?

House I liked in Delray Beach

Just when is the right time to buy?  Should you keep waiting for prices to drop even more?  I was in Delray Beach, Florida in August.  People there were saying, “you will never again see prices so low, but in the Spring they might be even lower.”  So what do you do — wait?  What if they start going back up?

The thing is now is a great time to buy.  And the Springtime probably will be too.  But more importantly, where are you in this process?  Do you need a place to live?  Do you plan on living in the property for a minimum of 3 years, but preferably 5 years?  Do you have funds to put into the transaction?  Do you expect your job and income situation to remain steady for the foreseeable future?  Will you have funds leftover for an emergency?

It’s not just about price and timing the market.  It’s about much more than that.