Home Purchase, When is the Right Time? - Time Out #499

Reading public, be forewarned. Tuesday is April Fool's Day. This is the day the practical jokers of the world tell their tall tales. It is also the day the cynics of the planet shine with their overall skepticism. Enough said. Enjoy the upcoming day! 

     Moving forward to a topic which is certainly not a joke, let's discuss the usual biggest ticket item a person/couple buy in their lifetime. I am talking about purchasing a home, whether it be the first one or the next one of many you have bought. 

     History says this home-purchasing exercise has been considered "the American dream". This absolute statement has been under scrutiny the last decade or so, especially regarding younger Americans. However, it is still near the top of most people's wish list. 

     So, what is the process, loyal readers in Our Town and far beyond?  

      Financial matters are the most common roadblocks standing in the potential buyer's path. Personal finances usually dictate whether the potential buyer(s) earn enough weekly/monthly/yearly income to make the monthly mortgage payment. However, even if the possible purchaser(s) earns enough to be able to make the monthly payment, another common obstacle is the required down payment amount. Usually this down payment amount is a percentage of the home's purchase price, and, therefore, is normally thousands of dollars. Many people elect to save their money for years, attempting to save enough money for the down payment amount. Other buyers receive loans or gifts from relatives or friends in order to acquire their down payments. Of course, home closing costs enter the picture, too, although most of those expenses are paid by the sellers. Then, there is also yearly property taxes, homeowners insurance, and a few other expenses the purchaser is obligated to pay. All these factors usually add up to lots of money up-front as well as money on-going every month, too. Lastly, home repairs have to be considered once you are the official owner. 

     As I alluded to earlier, more and more people in Our Country today are choosing not to purchase homes, but simply would rather rent them. The non-buyers list reasons such as they don't want to be "tied down" by home ownership. Many also say they do not want the repair problems/expenses ownership requires. Another factor non-owners give is they would rather invest or spend the large required down payment amounts in different areas of their own choosing, rather than sinking it all into a single home purchase.    

     Personally, I have been a purchaser over the many years, having bought 10 properties in 4 states. I was guided by my father, Col. C.H. Breedlove, who also thought buying a home was the prudent business maneuver. His apple didn't fall far from my tree, dear folks.