Should we Buy or Wait?
Hello,
Curious on thoughts about buying a home in Northern NJ. Market has been crazy with lots of overbidding and/ or all cash offers. To compete I have had to increase my budget by over $150K and take out most of my 401K for the down payment. This would be for a family home. I have investments elsewhere. Wondering should we buy know at what could be the height of the market or wait it out? Is my money better sitting the 401k or should I put it into a currently overpriced home. We are actually in attorney review on a townhouse that needs a ton of work and is overpriced and its just not sitting well with me. Looking for logical points for or against if anyone would like to share. Maybe there is something I haven’t factored in. Any insight is appreciated. Thank you!
Right now we have property shortage that is in no site of going away. We are building homes at an extremely slow rate. The value of homes keep going up even with high interest rates. Long story short everyone thought it was crazy in 2019 to buy, Covid happens and everyone through it was crazy to buy then now once again its a "crazy" time to buy but what would you do to buy a home in 2019-2022 if you could right now? Soon it will be 2025 with the same story of everyone wishing they purchased in 2023. Time in the market beats timing the market the majority of the time. Purchasing a distressed property tends to be a great way to go even if you think you are over paying right now.
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Real Estate Agent New Jersey (#1326442)
- https://shawnmcenteer.exprealty.com/
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As we say a lot on here - It is always a good time to buy the right property. Not just the perfect property that you want to live in maybe, but there is a house right now that would be a super deal for you, just sitting out there in NJ somewhere.
Also look hard at distressed properties as @Shawn Mcenteer said. That will open up a whole lot of doors for you, and ones that other people won't want to deal with....
Always buy, just be smart. Everyone can look back and say they wish they would've bought a few years ago.
I would change the strategy a little bit. Mainly look in areas that are not as popular. Meaning away from the major destinations in Bergen County. Put your focus on Northwestern Jersey - Upper Passaic and Sussex Counties. You can definitely find more value for your money there.
Hi Sylwia,
Did you end up buying the town home? I am surprised to hear you withdrew from your 401K rather than take a loan against it? How much "cash to close" did you need?