You're not going to live there for long. If you're considering buying property but would have to resell it in relatively short order, you're probably better off on the sidelines. Larson says that home prices at the national level will continue their decline into 2009 before stabilizing. "If you buy now and then you have to sell in two years—even if prices haven't fallen any further—you really haven't built much equity," he says. "So you are going to have to pay that 6 percent commission [to a real estate agent] ... and you aren't going to have much to show for it in terms of price gains." Prospective buyers should not purchase a home unless they are going to be able to live in it for at least three years, Larson says. Vanderwell, meanwhile, suggests seven years.
You don't have good job security. It's unwise to buy a home if you're not confident that your income stream is secure. And in an uncertain economy with unemployment on the march, the chances of job loss have increased for many. A renter who loses his or her job has a number of short-term options to fall back on, such as temporarily moving in with friends or family. An owner, meanwhile, is "up a creek," Larson says. "If you are in a mortgage, you've got to send that payment in every 30 days."
DollarBill of TX @ Sep 01, 2008 23:09:26 PM
Darla in Maui of HI @ Aug 28, 2008 16:13:28 PM
Nikka of CA @ Aug 19, 2008 10:27:06 AM