Let's face reality. All booms have a bust and the home ownership/real estate market is right in the middle of a huge bust right now. Prices are low, foreclosures are abundant and short sales are floating around out there in every town. The industry is saying that it's an opportune time to buy a home. Is it really? Anyone who is considering this needs to think more than twice before buying a home.
There are several reasons to ignore the hype and not buy a home. Yes, foreclosures are plenty but are they really a deal or a money pit? Empty houses are prone to problems when the electric, heating and air conditioning are shut off. Weather changes can wreck havoc on an empty home. In cold weather areas where no heat is supplied to the home, pipes can freeze,burst and cause water damage, wood can warp and walls can crack. In hot weather areas with no air conditioning, mold becomes a very big problem that can lead to health consequences. These problems most likely will not be fixed if a home is a foreclosure or short sale. The cost to repair these issues can be excessive.
Most of the good deals are in areas where there is also high unemployment. Even if you are purchasing a second home in one of these areas with the intent to rent, this can lead to a problem. Unemployed people can not afford to rent homes. You must consider how long you can pay this mortgage on your own. If you are employed and thinking of buying a home in a depressed area, you must consider things such as a cut in salary or loss of benefits due to the economics of the region. These are real things that are happening out there to real people.
For those who are in the market to buy a home, there are a few things to consider before making the leap. What is a good deal today may not be a good deal in a few years. Although you may be approved for a loan today, you must think about tomorrow. If the market turns around and housing prices begin to increase, it means that your taxes will increase and home owner insurance will also increase. These two items alone can cause havoc on a mortgage payment.
Although owning a home is a wonderful thing that most people want, each individual must look at all of the factors involved so ascertain whether it is the right decision for them. Be careful, don't let anyone talk you into buying a home and do your homework. It is your money and your future. Think more than twice before buying a home.