No one can deny that we’re living in a world of economic uncertainty. And it’s easy to put off buying a house when the economy isn’t thriving.
But if your personal finances are in order, putting off a home purchase could be costing you. In fact, if you’re financially ready to buy a house, here are some ways uncertainty can work in your favor.
There is less competition.
One of the most challenging things about the homebuying process is competing with other buyers for a particular house. You may be thrilled to find the home of your dreams only to lose out on it because someone else offered to pay more. When times are uncertain, many people put off their home search. That means you’re less likely to be outbid.
You may pay less for a house.
When there are fewer buyers in the market, sellers often have a more difficult time making a sale. As a result, they may lower the price particularly if they want to sell fast. When you look for a home in times of economic uncertainty, you may benefit from getting a home at a bargain price, which means you’ll start off having more equity.
You’ll have an asset you can tap.
A house also provides a source of financial security if the period of economic uncertainty is prolonged. As you build equity, you may be able to use it if you get into a cash crunch in the future. For example, you may be able to take out a home equity loan if you experience a financial emergency. By moving forward with homebuying plans now, even in a time of uncertainty, you’re putting yourself in a better situation in the future.
You’ll be diversifying your wealth.
If you have a 401(k) plan or another type of retirement account, you may find that your portfolio loses money during periods of economic uncertainty. Diversification is a key strategy when it comes to building wealth because you’re more likely to have some investments performing well when others aren’t. Real estate provides a way to diversify your financial assets, which can help you build wealth over time.
You’ll have your own safe space.
When the world is uncertain, it’s even more important to have a sanctuary where you feel safe. When you buy a house, you own a space where you and your loved ones can gather and be together through good and bad times.
We can’t avoid uncertainty and there will always be challenging times. But if your personal financial situation is stable, times of uncertainty may be the ideal time to achieve your dream of homeownership. A Homeownership Advisor can help you determine whether now is a good time for you.
