I’m a first-time buyer, how do I know when is the right time to buy?
We’re seeing a lot of first-time buyer nervousness both in New York (in anticipation of a possible price drop) and nationally (in anticipation of a price drop that isn’t just possible, but likely).
The old-fashioned Realtor response — because we really do want to sell you homes, but we don’t want to sell you homes that you’ll have to give back to the bank twelve months later — is to try to move when you’re emotionally and financially ready.
This is especially good advice for younger buyers — buyers in their twenties and thirties — because they can’t necessarily hold property for a long enough time period to make sure it’s a good investment. Typically, in the U.S., property has been a good investment if you hold it for ten or fifteen years — but for a younger buyer, that can be hard to do, since a new job or a new baby might force a move before then.
So the trick is to be sure you want to “settle down” — and to be financially ready. I recommend that you have a 3% to 5% down payment ready to go before you consider buying your first home.