The song remains the same...the housing market is slow, foreclosures are up, interest rates are low, now is the time to buy!!

But is it really the best time to buy...for you?

Think about these questions if you are a first time buyer...and then make a decision. 

1)  Is your job stable?  If rumors of layoffs are going through the grapevine, try to find out if your job is secure.  If you have doubts, trust your gut feeling.  Don't buy if you think your job is in jeopardy.

2)  Can you make a payment based on one income if you are married/living with a roommate?  Many homeowners purchase more house than they can reasonably afford.  A house payment is just part of the obligation--there are taxes, interest, and utilities as well.  Don't depend on more than one income (or a large percentage of your take home pay) to make the house payment.

3)  Figure out the true cost of home ownership first.  Yes, the interest deduction is a plus at tax time.  Along with the house comes maintenance, repairs, decor.  Think about the extra expenses that will come up and figure a percentage into your monthly budget dedicated to house upkeep.  

4) Are you planning to stay in the home for several years?  It takes time to build equity in a home.  If you plan on a job transfer in a couple of years to a different city, you may not be able to make money on the transaction when you sell.  It's best to live in the home at least four to five years before selling.

5)  What type of lifestyle do you enjoy?  If you travel often for your job, like to take extended vacations, dedicate yourself to long hours at the office, dislike yard work and home repairs--buying a house probably isn't for you.  (Of course you can still own--check out a condo!) 

Buying a house will cost more than renting...but the benefits of home ownership outweigh renting in many respects.  Still, it's never a good time to buy if your financial situation is unstable or the maintenance of a home doesn't fit with your lifestyle.  Take the time to do some math, talk to homeowners--then make the decision if buying is right for  you.

Thank you for reading my blog.  Comments are welcome!  If you  are thinking of buying or selling and would like additional information about the current market in the Kansas City area, email me.