Is it a good time to buy my first home?
Hi,
I’m wondering what peoples general opinions are if it is a good time to buy at the moment based on how the housing market is currently?
I was looking to pull money out from my Roth IRA & investments in stocks, but the stock market is not doing so hot this year (given my investment accounts are down).
My game plan would be to buy/ house hack a duplex or triplex here in LA or OC area (looking around $500K - $600K). And i would be trying for a conventional conforming loan or an FHA loan.
Let me know your suggestion & opinions! And if you have any area suggestions (in LA or OC) with that budget.
#3 Managing Your Property Contributor
Run your numbers. Look at how much it would cost you to buy. Think about one time costs, but also monthly payments (mortgage, property taxes, etc) and how much you could get for renting rooms. Then look at how much you are currently paying and compare the two numbers. In some places it is cheaper to own your own home, in others it is a lot cheaper to rent. If you are in the latter, also think about buying a rental in a less expensive area.
If you buy for long term, and cash flow, it doesn't matter too much what time you buy in the market. Make sure to underwrite deals conservatively, and see if you can hit your target returns. Love the idea of a house hack, and the FHA loan is also amazing! It's about time IN the market, not about timing the market!
Best of luck!
#1 All Forums Contributor
- Investor
- Virginia
@Theresa Harris
You are on a site with 2 million real estate investors. I think I know what most would say?
On a serious note, never a bad time to buy, just a bad buy. Do you research, know the risks and if a deal makes sense then go for it
#3 Managing Your Property Contributor
Quote from @Chris Seveney:
@Theresa Harris
You are on a site with 2 million real estate investors. I think I know what most would say?
On a serious note, never a bad time to buy, just a bad buy. Do you research, know the risks and if a deal makes sense then go for it
I know, but not everyone has that kind of money and everyone is at a different stage-some are starting, some have already completed their portfolios.
Start getting pre approved and house hunting and understand that it will probably take 6-12 months of research before finding the right house . Try not to get frustrated , market is still hot but cooling down so houses might stay on the market a lil longer