Monday, September 7, 2009

The Time is Right.

By Rico K. Setyo

Buying a house is one of the biggest decisions people make in their lives. Determining to buy a house is a very complex situation because of both its internal and external factors.

Internally, the individual must be able to ensure job-security in spite of the economy (Martin). Debra Dillon, head of a financial planning firm, mentions that the security of jobs varies from one field to another. It is important to know whether you will have consistent income flowing in because you need to be prepared to cover expenses.

Other than security, another thing to look at is whether you know you want to settle down in a house already because it is a long term commitment. Dave Ramsey, a Personal Finance Expert mentions that if you are still young and want to buy a house, there are a lot factors that should be considered before the final decision. Factors like moving away, getting married or even future job opportunity elsewhere are possibilities that can alter your decision (Ramsey).

An external factor would be the condition of the economy and the housing market. Even though there are multiple issues that can arise as you prepare to purchase real estate, the housing market as of now has many opportunities for first time buyers. In a declining economy, the incentive for many first time buyers is the tax credit up to $8,000 (Gadd). In addition, the housing market is actually picking up as unemployment rises. Dillon states that "this could be the opportunity of a lifetime to buy a house [because] in some areas prices are below what they were five or six years ago” (Martin).

Sources: by Dave Ramsey by Ellen James Martin by Brian Gadd

1 comment:

  1. Getting into the housing market is very scary as of now, but I really like the potential that it offers right now. People are trying to come up with new ways to make money, and this seems like the next step, we just have to hope that you dont get stuck with pieces of property that eat away at your money.

    posted by Adam Lindheim group 6A