Deciding the timing to buy a home is something you must think about calmly. Getting carried away with an impulse can cost dearly. And the same risk exists if you wait for a better time that, in the end, never comes.
It is essential to consider several elements, both personal and related to the market, to make the right decision.
What to consider when deciding whether to buy a home now or wait
1. Personal financial situation
Buying a home is the highest investment that many people will make in their lives. Therefore, it is important to 'do accounts'. Having a financial cushion and regular income will not only provide security but are issues that financial institutions may require to give credit.
Along with these aspects, it is essential to estimate monthly expenses. That will give the key to the level of indebtedness that can get faced without drowning along the way.
2. Desire to settle down, the key to buying a home now
Unless it is a real estate investment, buying a home represents a long-term commitment. Therefore, before deciding whether to buy a house now or wait, it is essential to be fully convinced that it will be the home, if not definitive, then for many years. Job stability, again, is crucial.
The same applies to second homes. Buying and selling in the short term do not guarantee a good return. For this reason, it is a decision you might consider in depth while evaluating the rest of the factors that may influence it.
3. Analyze the real estate market
We recommend always do a little research in the market before deciding. The housing stock varies over time and by area, and we must not forget that the availability of properties influences prices.
In Spain, at the end of 2020, the stock of new unsold homes was nearly 457,000; that is 3.6% less than in 2019 and 30 % less than in 2008 (data from the Ministry of Transport, Mobility and Urban Agenda).
When there is an imbalance between supply and demand, prices tend to rise. However, rushing can lead to the mistake of acquiring a type of home that does not meet our needs. However, if we find an attractive opportunity, it would be a mistake not to take it. We have to find the balance point on the scale.
4. Interest rates
Interest rates, both fixed and variable, are at very convenient levels. Additionally, the pandemic has changed preferences in housing - houses with gardens and terraces - which may encourage embarking on the adventure of looking for a new home.
It is convenient to analyze the advantages of these interest rates, even if you have to face a higher price in those areas and homes currently more attractive. Besides, we must recall that buying a home entails additional expenses in taxes and procedures.
In short, there is no ideal time for everyone. Encouraging yourself to buy a home now or wait depends on factors whose valuation may be distinct for each person depending on their situation.
But, if you decide to go ahead, you'll find a countless number of properties of all kinds and prices at SpainHouses.net. Our goal is to help you find the home of your dreams.