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3 Questions to Ask Before Buying a House
3 Questions to Ask Before
Buying a House
1. Why am I buying a home in the first place?
This truly is the most important question to answer. Forget the
finances for a minute. Why did you even begin to consider purchasing a home?
For most, the reason has nothing to do with finances. A study by the Joint Center for Housing Studies at
Harvard University reveals that the four major reasons people
buy a home have nothing to do with money:
- A good place to raise children
and for them to get a good education
- A place where you and your family
feel safe
- More space for you and your
family
- Control of the space
What non-financial benefits will you and your family derive from
owning a home? The answer to that question should be the biggest reason you
decide to purchase or not.
2. Where are home values headed?
When looking at future housing values, Home Price Expectation Survey provides
a fair assessment. Every quarter, Pulsenomics surveys
a nationwide panel of over one hundred economists, real estate experts and investment &
market strategists about where prices are headed over the next five years. They then average the projections of
all 100+ experts into a single number. Here is what the experts projected in
the latest survey:
- Home values will appreciate by 4%
in 2015.
- The cumulative appreciation will
be 19.5% by 2018.
- Even the experts making up the
most bearish quartile of the survey still are projecting a cumulative
appreciation of over 11.2% by 2018.
3. Where are mortgage interest rates headed?
A buyer must be concerned about
more than just prices. The 'long term cost' of a home can be dramatically impacted
by an increase in mortgage rates. The Mortgage
Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all
projected that mortgage interest rates will increase by approximately one full
percentage over the next twelve months.
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