Home Off Beat Why First-Time Bungalow Buyers Might Want To Wait Out The Red-Hot Market

Why First-Time Bungalow Buyers Might Want To Wait Out The Red-Hot Market

by DrPrem Jagyasi

There is quite arguably nothing more exciting or nerve-wracking than making your first home purchase. Whether you are considering buying real estate for investing purposes or to start making a home for yourself or your family, if this is the first time you are in the market then you might be wondering if now is the time. The real estate market is like any other financial market; what goes up must come down. So with housing forecasts on the upswing, is it time to make a move, or better to sit on the sidelines and wait it out?

Buying in a red-hot market is always a gamble. There is always the chance that the market will continue to climb, which can pay off in the long run. But if real estate has reached its pinnacle or is near to it, you might be throwing money away that you likely won’t get a return on anytime soon — if ever. First-time buyers should give some real consideration to whether or not now is a good time to pull the trigger. And the decision really depends on where you are financially and what your intentions are.

Buying a bungalow in Canada right now might be a risky proposition unless you play it smart and aren’t looking for your dream home. Since it’s a seller’s market, the prices are high; you might not get the bungalow of your dreams without really paying through the nose for it.

Make sure that you are realistic about both, the price of bungalows Winnipeg and your budget before you make an emotional purchase. If you get into a bidding war due to an emotional attachment, you can put yourself in a predicament that can affect your financial situation for years to come.

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If you are a young homebuyer who is looking to start investing and think that renting a bungalow is tantamount to throwing money out the window, you might want to consider whether putting the money into real estate is really what you want to do.

There are many other areas of investing that can make you more money over the short term while you wait out the real-estate boom. It might be better to save, put your investment into another area, and wait it out. Then, when the housing market comes back down to where forecasters are warning it will, you won’t be out any equity and you just might get a better deal.

Statistics show that as many as two-thirds of the people who plan to sell their homes have stated that housing and mortgage costs are putting them in over their head. First-time buyers often don’t think about the additional fees that are involved in financing a home. Things like homeowners’ insurance, taxes, and mortgage insurance are all extras that aren’t included in the original price of the mortgage.

Those who have recently bought bungalows around Canada maintain that they are having  buyer’s remorse. They felt like it was their time, but they now wish they had saved more, waited longer and given the purchase, much more consideration.

Now living paycheck to paycheck with all sorts of fixer-upper costs, many buyers are dissatisfied with the way they tied themselves down financially. The worst part is that once you buy a home, if you turn around and sell it, it is a huge cost to your bank account. Many of the costs of a first home purchase are involved in financing just the first couple of years in the home.

If you take out a mortgage, you are barely doing anything but paying the interest for the first decade. So instead of buying at the top of the market, unless you have a lot of additional resources and disposable income, you might want to let the market cool before you take the plunge. Sometimes getting in while the water is too hot can end up really burning you.

If you are going to take out a first-time mortgage, just make sure to really budget wisely so that if trouble comes your way you have the resources to handle it and you don’t find yourself in foreclosure. Everyone wants their dream house, but sometimes you have to be patient and wait until you have the funds to realistically afford it.

Article Submitted By Community Writer

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