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Why Now Might Not Be The Best Time…

Home Buying Planning

5 Reasons to not purchase your home.

As summer fades and we enter the twilight of the home buyer season, the rush has shifted from getting that house before school is back in session, to focusing on getting settled in before the holidays and family members arrive in tote. Home Buyers have often felt frustrated with a relative low inventory and with being outbid by multiple offers flocking for the same property, thereby bidding up prices. This becomes a bit uneasy real fast and feeling a little desperate all the while getting drawn into the frenzies, lest you forget the reason you’re in this position—to live the American dream, yes? No? But the American dream is not one size fits all… And with that in mind, here are a few reasons I think one should not become a homeowner–not just yet.

  1. You cannot afford it. In Los Angeles, the average salary is $62,558 while median house price for single family homes in July was $597,520 (C.A.R.), you will need to double your salary to be able to cover your mortgage payments.
  2. Not enough saved for a 20% down payment. While 20% down might be ideal for some, it is not necessary, as you could get into a home with as little as 3% down. Additionally, there are several programs available with down payment assistance, e.g. lender programs, government options, your employer, etc. However, if you find that you are having issues coming up with the down payment on your own, this should serve as a reason to be cautious.
  3. You are in an unstable relationship. If you are relying on two incomes to manage the mortgage payments and the upkeep of your new home, you might want to reconsider until your relationship is more stable or your finances have strengthened.
  4. Your job is not secure. While job security may be a relative perception for some, it you have reason to believe your current employer is planning a “restructuring” or you just cannot see staying put for much longer, then you might want to put buying a house on the back burner while you explore your options.
  5. You do not want the responsibility of owning a home. When you own your own home, you are responsible for everything—mortgage, taxes, homeowner’s insurance, repairs, etc.; if this is not your forte, you might want to stick with renting.

Renewable energy

Of course, this is just a cautionary tale, ultimately, only you know what is best for you and, therefore, only you are able to make the best judgement on whether homeownership is right for you or not.

“A good home must be made, not bought.” – Joyce Maynard, Novelist & Journalist

Source: Make less than $54,250? You may qualify for low-income housing
California Association of REALTORS® (C.A.R.)

 

 

 

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