Buy a house (II)
When the housing market tends to soften, as in times of disinflation and recession, for example, experts advise viewing your home as a tax shelter rather than a growth investment. All single should figure their personal capabilities and not be unduly influenced by the fact that more and more buyers are flouting the two and a half times and 25 percent rules because of the high price of real estate. Generally, the best time to buy real estate is when mortgage lending rates are low. But there is no one perfect time to make a move.
The plant that works best for most people is to set some figures. Write down how much you can pay each month, exactly how much cash you have available for a down payment, and how much you can afford for closing costs. These figures, of course, will depend upon your monthly income, your expanses, and your savings and investments.
Don’t overlook your personal circumstances. If you are a young professional rising up the career ladder, you may be able to afford a more expansive home than if you are a retried widow on a fixed income or a divorced woman (with two children) dependent on alimony and child-support payment.
After you write down your dollars amounts, carry them around with you when shopping for a home with good home design. Stick to them. Control the situation and don’t be tempted to overextend.
