When Is the Right Time to Buy?

IS Now a good time to buy a house? The answer is yes if you really need a house to live in and if you have found one that you like. Don't wait for mortgage rates to come way down. Though they may decline further in the future, you certainly cannot bank on that happening. Mortgage rates tend to decline much less than interest rates in general do. But what will happen if rates really plunge? Then demand for houses will heat up and prices are likely to surge. So, either way, you are probably best off buying your dream house now.

How much of your income can you afford to spend when you are buying a house or an apartment? A little less than you used to. Some years ago, it was sensible to reach financially to get the biggest house in the best neighborhood that you possibly could manage. Inflation then was running away, meaning that your house was likely to spurt in value, and you would be paying off your mortgage debt in ever depreciating dollars. Now that inflation is moderate, real estate professionals advise you not to buy more house than you can handle. They say you may spend a little more than you are comfortable with because real estate stands to remain a sound although not a runaway investment. Beware, however, of buying a house well beyond your means. Once you own it, you will not be able to keep it up, and that will hurt you when you are ready to resell. If you don't have the money to paint your house or otherwise repair it, you will never get top dollar for it.