Week 1 Cp Xeco 212
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- Category: Politics: Economics
- Date Submitted: 01/09/2012 06:25 PM
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Cynthia Fluker
XECO 212
Week 1
New House Readiness
Many people say we are currently in a buyers market, because there are so many unsold homes. There was a time when buying a home required thousands of dollars for a down payment and that isn’t the case currently. A normal housing cycle runs four to six months of available housing, but currently cycles are running twelve to sixteen months. Banks and owners are eager to sale which is a benefit for buyers. The state of the market is a pro.
The con to purchasing a home is the extra expense. The primary goal would be to not pay a toxic price that makes the home a uncomfortable investment. I would look at my home as an investment into my retirement as well as a home to fit my families needs. The big questions would be; Can I pay my mortgage, if I was on disability receiving only 75% of my pay? Can I afford the additional maintenance expenses? And will the additional responsibility be too much with the expense of a baby? I think some home buyers get ahead of themselves. Homes seem like a bargain, but the economy is weak and unemployment is at it’s highest. Remember, if I fall on hard times the option to sale is available but right now hard to retain a buyer.
In today’s financial state I would venture to rental property before buying a house. This
would allow me to see if I can manage the responsibilities of a house with a new baby. If I was
successful I would move towards ownership.
XECO 212
Week 1
New House Readiness
Many people say we are currently in a buyers market, because there are so many unsold homes. There was a time when buying a home required thousands of dollars for a down payment and that isn’t the case currently. A normal housing cycle runs four to six months of available housing, but currently cycles are running twelve to sixteen months. Banks and owners are eager to sale which is a benefit for buyers. The state of the market is a pro.
The con to purchasing a home is the extra expense. The primary goal would be to not pay a toxic price that makes the home a uncomfortable investment. I would look at my home as an investment into my retirement as well as a home to fit my families needs. The big questions would be; Can I pay my mortgage, if I was on disability receiving only 75% of my pay? Can I afford the additional maintenance expenses? And will the additional responsibility be too much with the expense of a baby? I think some home buyers get ahead of themselves. Homes seem like a bargain, but the economy is weak and unemployment is at it’s highest. Remember, if I fall on hard times the option to sale is available but right now hard to retain a buyer.
In today’s financial state I would venture to rental property before buying a house. This
would allow me to see if I can manage the responsibilities of a house with a new baby. If I was
successful I would move towards ownership.