What to consider before buying your dream home in 2020?
By Magnolia Realty | Aug 30, 2020
If you are revving up to purchase a house in the next 4-5 months – or even decide whether it’s the right time for taking a decision, some useful information will be easier to make the right judgment. The housing market in 2020 has been growing through some radical changes, mostly attributed to the pandemic that the whole world has been witnessing. The overall financial market has its own quirks, too. The steady decrease of interest rates in home loans and gradual devaluation of conventional investment tools help a certain section of the housing market, particularly give the affordable section a leeway to find ways to glide through the tough situation.
Inventory is pretty loose – great houses out there
If you have a plan to purchase a house and a pretty steady job or business, you could have taken a purchase decision right now. This is the right time because inventory has not fallen for the last 2-3 months, and in 2020 that won’t change. That’s actually good news. You have a wide gambit of choices in the market where you can easily juggle between different developers.
1. Consider a fixer-upper – What is a fixer-upper? It simply means, instead of looking for houses that are tangential to your budget, look for houses that are below your budget and invest the rest to upgrade it. Since the market is quite open now, you can easily find different choices and negotiate your way to save some money. You can invest that extra money in later on your own design choices and other utilities.
2. Delve into old listings – You can find some old listings in housing portals; do not ignore those because old doesn’t mean it is bad. It can also be meant that the price was too high from the beginning. Some developers do not really drag their feet into the lowering prices, and sometimes old listings are not updated, so the houses just hang out on the market. So, if you are searching for news houses, you will probably miss great properties with price adjustments.
Houses are expensive but your down payment shouldn’t
According to different studies, more than 50 per cent of renters who want to purchase their own homes, the biggest challenge is the down payment. What everyone talks about the 20 per cent down payment for the agreement, which is most people think is way more than expected. This is not that case, there are many developers who can give you 10 per cent, also they can give you a flexible payment schedule and other options. You just need to talk to developers clearly about the payment schedule.
Interest rates are low, make it a deal-breaker
The interest rates are in a historic low bracket and therefore it is significant to put that calculation into your perspective. The interest rates can be easily offset by other house buying factors such as location, cost sheet, loan structure and down payment. You can’t change the rates but you can adjust your priorities and make your homeownership fit your budget.
High-end markets to watch
There are certain markets that are not yet fully urbanized but you must look at things from a long-term perspective. There are certain key metrics that you have to be considered before thinking about buying a house.
1. Job Growth or industrial area – Mostly nearby office areas or industrial areas are conducive for residential people because you can get all the facilities nearby.
2. Schools and educational institutes – If you have kids, you can consider the place where you can find educational institutes or schools.
3. Affordability – Suburbs are a great place to have buy a house within a budget. The affordability is a great factor, especially in this period of time when you can find a good place for investment.
4. Per cent of inbound home searches