One of the most important physical properties that a man can own is real estate. It is one of the five basic needs of a man and that is why a lot of people like to capitalize on the business of buying and selling houses and other properties. The tricky element to real estate is to know when to purchase a house.
Is There a Final Answer?
The truth is there is no definitive answer as to when buying a house is right. The value of a real estate property fluctuates every five to six years. This constant shift is what makes people double think whether they should just buy property or sit it out until values drop. Property could be purchased relatively high right now but in just three or four years the price could suddenly drop and you’d be in a loss.
Looking into Long-Term Ownership
Many resources will tell you that today is the right time to purchase real estate. In a long term point-of-view they are correct. At the moment, the economy is on a rebound state, and the values of real estate are considerably favorable for the mass majority of homeowners and those interested in buy-and-sell businesses.This is all because long-term owners will not care about the value of their property right now. The more important aspect is the value of real estate five to ten years in the future. Since 2009 the economy has seen a 24% rise in the value of property in the real estate market so it is pretty lucrative to buy while the prices are low. This is the time where mortgages are low and the process for finalizing all of the legal documents goes by so quick and easy.
Another reason why today is a great time to purchase real estate is because the aforementioned cycle has just begun. The country is currently in the early stage where prices are low. It will be four to six years before the economy shifts and sellers can increase the value to earn reasonable profits. This means you could gain a lot six years later when the value of repairs, age, ownership value, and location value eventually stack up on top of the original market price.
Looking into Short-Term Ownership
People looking into short-term goals should not be bothered by the seasons of real estate profitability. If you are the type of person who is not going to sell the property later on, or if you won’t really care about the future value of the house, then almost any time can be a good time to purchase real estate. This is because sellers will always try to make a sweeter deal for the buyer just so they can make a sale.
Putting It All Together
To wrap it all up, the right time to purchase real estate pretty much depends on your own personal goals. If you are only going to own one for less than five years, then all of the complications of the market should not be of your concern, and you might as well just stick to renting. If you are going for long term ownership, then today is a good time to purchase since the cycle has just rotated and properties are ripe for purchasing.