Found this article in The Wall Street Journal and thought it was appropriate.

March 11, 2008

Why Now is a Smart Time to Buy


Now is a great time to buy a home, say the financial gurus at the Wall Street Journal.

The Journal calls it a buyers market and offers these suggestions for first-timers getting their feet wet. While their advice is solid, it’s not revolutionary.

Remember this is a place to live not a stock market investment. Lenders want buyers to spend no more than 28 percent of their gross monthly income on mortgage payments, real estate taxes, and home insurance. Buyers shouldn’t count on stretching further because lenders won’t approve their loans.


Source: The Wall Street Journal, Shelly Banjo (03/11/08)

Cash is king.

Location.

Compare.

Think long haul.

 It will probably take at least six or seven years of living in the house to be able to sell and come out ahead.Besides just looking at the comps, buyers should examine what it would cost to rent a similar house in the same area and they might consider what it would cost to buy land and build a comparable home.Location, location. As any good real estate professional knows, homes in good school districts where the crime is low are much more likely to hold or increase their value.Having enough money in the bank to pay closing costs that are typically an additional 3 percent of the price of the home is necessary.