Media outlets suggest that the present moment is optimal for purchasing a home. They quickly forget, however, their previous proclamations that 2010 was the golden year to buy property, due to historically low prices and affordable interest rates. Even more distant is the memory of 2005, the ‘ideal year’ to invest in property as the market seemed only to surge upwards, and waiting was simply an opportunity for being priced out.
Despite these assertions, we understand that property prices are not immune to economic laws. The seemingly stable market of 2005 was, in reality, an inflated bubble primed to burst. As we observe property prices rising once more, concerns about the timing of investments resurface.
My spouse and I tied the knot in 2010 and for the past three years, we’ve been meticulously paying our debts, boosting our income and building a financially stable life. Despite ups and downs, we’ve downgraded our debts from $40,000 to $16,000 (only student loans pending!) and enhanced our income by over 30%.
However, focusing on debt and savings often left us with limited resources for a home down payment. Recently, we’ve decided to reorganize our financial plans to prioritize saving for a home, all while continuing to repay my student loans.
Many factors play into the decision of buying a house. The lure of low interest rates and escalating property prices may push us towards obtaining a mortgage. Yet, we’ve come to understand that the best instance to buy a property is when one is both financially and emotionally equipped for it.
Similar to other investments, the housing market experiences fluctuations. Interest rates and prices may soar and eventually descend. Hence, hastily purchasing a house while ill-prepared to navigate this financial whirlwind can be unwise.
Ownership also means being accountable for mortgage repayments, homeowner’s insurance premiums, property taxes and unexpected repairs. We aspire to become homeowners someday and benefit from low interest rates, but deep within we recognize that we’re currently financially incapable of taking this leap. We’ll continue to save for our home down payment, hopeful that we’ll reach homeownership soon.
In your opinion, when is the right moment to invest in a home?
