You might have heard the advice that the best time to sell a house is at least five years after purchasing it. But, with the ad hoc nature of today’s market, old rules do not always necessarily apply to every situation. The market is unpredictable and different sources have different forecasts but there are a few reliable tips you can keep in mind when deciding to buy or sell.
Many people focus only on the finances when it comes to buying a new home. While this is the right track to be on, there are also other important issues to factor into the decision. Major life changes can have a direct impact on your purchase of a new home. In fact, people most often file for bankruptcy for three common reasons: a change in job status, divorce, and expenses due to unforeseen health issues. Ask yourself if you will be moving within five years, having kids, changing jobs, or have a low credit score. If you find the answer is yes, then consider waiting a while before buying, when things have settled.
Back to finances. These are an important part of buying a home. Think about your future; will you be at the same income level you are at now or will there be an increase in the near future. Also, what level of debt are you in? This will affect your loan rate and so may not be the best time to take on a mortgage unless you can guarantee it.
You can always refer to a mortgage broker or financial counselor for detailed advice on what you should do and when. They can also advise you on how to protect yourself to avoid a future financial disaster. Buying a new house can be managed with the right guidance.
