Personal Considerations affecting When to Buy

Experts would say buy a home if you meet the following criteria:

  • Need a lucrative tax break. The mortgage interest deduction can make home ownership very appealing.
  • Are not counting on price appreciation in the short term.
  • Can afford the monthly payments.
  • Plan to stay in the house long enough for the appreciation to cover your transaction costs. The costs of buying and selling a home inchtde real estate commissions, lenderfees and closing costs that can amount to more than 10 percent of the sales price.
  • Prefer to be an owner rather than a renter.
  • Can handle the maintenance expenses and headaches.
  • Are not greatly concerned by dips in home values.
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