IS THIS THE RIGHT TIME TO BUY? That’s the most common question people ask me when I first connect with them to find out their needs about buying a house. Many people seem to get so hung up by this question that they tend to forget their main purpose of buying a house. So, what EXACTLY is the purpose of you buying the house?
To the many homeowners, or first time homebuyers who intend to buy a house as their primary residence, there will never be a good or bad time to buy a house. Your main objective here is to buy a residence that you like, that you feel comfortable with and that you can enjoy for the many years to come while you own the place.
So the main question you should really be asking is “Am I financially able to pay for the mortgage on this house?” If the answer is a firm ‘Yes’, then my recommendation is to just do it. There can never be a bad time to buy a house if you need one and are financially able to do so. The most difficult part is to be able to find something that you truly like.
Do not let your fear be the financial hindrance in life. What if the property value drops after you buy it? Well, I hate to disappoint you, but you will never be able to time things perfectly in life unless you are just very lucky. If you plan to buy a house to live in it for the long run, do not let the macro economy dictate your decision, unless if you expect something drastic (and credible) to happen. If property values do drop, do you expect there to be another crash? My personal opinion is no.
So, what if I’m buying the house as an investment, as my first rental property? IS THIS THE RIGHT TIME TO BUY? Well, if you are a buyer in this category, then the question you really need to be asking is “Do the numbers work?” Real estate investors like me only and will ONLY look at one thing when it comes to buying an investment property. The numbers! Assuming that the numbers do work, then it is pretty much the right time to buy. I have always encouraged my friends and family to include real estate as part of their wealth building portfolio. But before you jump into your first rental property, I strongly suggest you research and understand what it takes to be a landlord. You do not need to do everything yourself. You can always hire a property manager to help you. But it is very important that you know the essence of what it takes to be a landlord even if you plan to hire a property manager.
Tien Yee and his wife Bee are principals of Malaya Capital LLC. Previously, he was a civil engineer and his wife was an IT professional. Feel free to drop us your real estate questions at firstname.lastname@example.org
DISCLAIMER: This article is written based on our personal and professional opinions. We are not certified financial advisors and are not qualified to provide financial or legal advice.