Best Day to Buy?

There’s no day like closing day!

Have you heard the old Chinese proverb about when is the best time to plant a tree? The answer? 20 years ago. The next best time? Today. 

When I am asked about the best time to buy a house, I think about that proverb. The surest way to make one’s money back from a house purchase is to buy it, and then wait. Just like the stock market, the housing market can have volatility that will cause values to fluctuate into the black and red on a temporary and short term basis. And while there are no guarantees in life, real estate tends to appreciate. Just like the stock market. The surest way to not experience real estate appreciation is to wait to buy it. 

We’ve been told that interest rate drops are right around the corner for over a year now. And yes, they have dipped from the recent peak of 8+%. Slightly.

My wife and I bought a (second) house at that peak rate. Do I regret it? I don’t, for a few reasons. 

First, we are nearly to the two year mark where we will no longer owe capital gains on a resale. While there are no plans to sell, I’ll breathe a sigh of relief when we get to that mark because to sell before would constitute a big capital gains tax– probably $20,000 or more. After two years, we can keep or sell at our leisure or necessity.

We will refinance. Of course we will. A fixed interest rate provides protection against uncertainty, which is important in life. But rates are bound to drop. We just don’t know when. We’ll wait it out until it makes more sense (perhaps another 0.5% lower) to justify closing costs and in the meantime, we will continue to make improvements to the house to assure a strong appraised value when that time comes. 

Lastly, and most importantly, there is simply no value that I can place on the enjoyment that we’ve gotten out of the property that we have now owned for almost two years. My wife and I like to say that besides getting married and having our three sons, buying this house was one of our very best decisions. It’s enriched our lives in so many ways. Someday, it will enrich our retirement accounts, too. 

You won’t get anywhere unless you start going there. Waiting around to buy real estate is like not catching a train because it doesn’t stop right at your front door. Sure, there may be some discomfort getting to the station; but you’ll get to where you want to be faster if you get there and board the train instead of walking the whole way.

Call or email me TODAY to start on your journey!

(812) 552-9013

alarson@c21scheetz.com