For most Americans owning a home has a significant cultural and emotional value. A home defines more than your address since it often implies which schools you kids will attend and the quality of life they will enjoy. But how can you time your home purchase? Like a good stock trader you will need to determine if the market has bottomed before you buy.But that could only be one factor to determine the timing of your purchase. So, the question remains if it’s a good time to buy a San Jose Short Sale home?! Other questions to ponder before you decide to go home shopping are:
1) What is the bond market signaling in terms of Short and Long Term interest rates.
If the mortgage interest rates are likely to climb, then it might be an ideal time to take advantage of low interest rates.
2) What will be the ratio of your Mortgage Payment to your Rent?
Most financial gurus don’t recommend a borrower to tie up more than 30-40% of their gross monthly income to housing. Don’t risk your financial future just because you want to own a home.
3) What market and what kind of property are you planning on purchasing?
Will this be a Single Family Home or a Multi-Unit where you could generate some income from the portions you don’t plan to occupy.
In Silicon Valley market Single Family homes are appreciating an average of 2% per month in the last year according to California Association of Realtor’s March Report. So, click here to get a Free eBook on the market you are focusing to find out if you are fishing in the right pond for your next catch.