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Joel Javan's Blog

By Joel Javan | Agent in Santa Clarita, CA

Is Now a Good Time to Buy Real Estate?

A lot of qualified potential buyers are asking this question, which is good because you need to know these things especially when it comes to buying one of your biggest investments — your house.

You would hear people saying, "don't ask a real estate agent, as they will naturally say 'yes,' because it would mean commission for them."  To a certain degree, they are correct.  Most agents would make that recommendation without any basis at all except their commissions, so be careful.

In my opinion, people who could buy real estate should do so as it is important to own your home.  Just remember that you should know other factors in buying real estate.  Robert Kiyosaki said in Why We Want You To Be Rich, a book he co-authored with Donald Trump, "knowing when, where and at what interest rates to buy are also important."

A lot of people bought at the height of the real estate bubble when prices are climbing and interest rates are rising by the hour.  Back then, real estate agents did not have to work, they just sat waiting for their phone to ring and made commissions because people were buying left and right.  People were panic-buying and it snowballed.  They were thinking that since a lot of people are buying, it must be the right thing to do and that if they do not act fast, they might get left behind.  I do not need to tell you where this led us.  The fact that 'experts' gave poor advice to buyers played a big part in this.  You probably heard agents who said things like "Do not throw money you pay in rent down the drain, buy your dream home instead."  This is a good advice depending on the market condition at the time it is given.  It was probably not wise during the real estate bubble.

It is best to buy when there's a sale going on and this is true for real estate as well.  So you ask, "Is now a good time to buy real estate?"  I would answer that with other questions.  Do you think there's a sale going on right now?  Are home prices down?  Are interest rates at their all-time low?  Educate yourself, request your copy of my FREE report: "8 Secrets For Saving Thousands When Finding, Buying and Financing Your Next Home."

Comments

By Michael Russell,  Wed Sep 8 2010, 10:24
if your renting, tired of doing so, have a stable income, can afford to buy in a neighborhood you like in a house you like for 25% or less of your gross income on a 15 year note then why wouldn't you buy? Is the neighborhood experienced tremendous foreclosures, is the local economy treading along or a sinking ship, are your ready for the committment of a mortgage versus renting. Remember that asking price is just that.
By Vivianne Dordea,  Wed Sep 8 2010, 10:51
Yes, it is. Interest rates are as low as they can get and we are in a buyers' market. If you can get a mortgage and are considering a home purchase, now is the time!

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