Most folks have different interpretations of long-term, to a child long-term could be 10 minutes, for newlyweds it could mean forever. For a buyer contemplating a home purchase, it should be until the housing market starts ascending with appreciation. How long will that be? Certainly somewhere between 10 minutes and forever, all kidding aside. For consumers buying a home today with intentions of only owning that property for 2 years or less, I would encourage those families to reconsider and continue renting, unless they were able to purchase a home at a bargain basement price and have instant recognition of worth from day one.
Is that scenario possible in today’s turbulent economy? Absolutely, I just sold a home to a first-time home buyer for 5% below fair market value, this buyer quickly took advantage at the opportune time. There’s not enough of these great under valued deals for every consumer, so it’s imperative that the lion’s share of buyers, buy for the long-haul. Most markets have bottomed out, stabilized or exhibiting signs of a hike in home prices. It’s important for buyers to be level-headed today and not expect values to inflate anywhere near the prices that we experienced in the early 2000’s.Many neighborhoods throughout the country were seeing 10% to 15% yearly appreciation during that period. Those days are gone and not likely to be seen again.
Buying a home today will not provide instant wealth, but over the long-term, it will supply a sense of pride and slow progressive equity. With this market, the realistic way to look at a home is it’s a place to live. Purchasing a property does not guarantee that you’ll make a big return on your investment. It is possible though, if you stay long enough. A telltale sign that prices have hit bottom are more investors have ventured back into the market. A few investors have even started flipping properties again. Most investors and buyers are buying and holding their investment with confidence that their home is still the best long-term asset they have in their portfolio. Many prospects who can’t stomach uncertainty won’t buy now, but may regret that decision as prices and interest rates start their inevitable upward trend. There are no assurances in life, but a real estate purchase today and held over time will offer benefits unmatched by any other type of investment. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs, join my professional networks on LinkedIn and Twitter and easy access to view local area homes for sale in Davis, California and the surrounding communities.