Quiz yourself with a series of difficult questions before you decide to buy a home. Your honest answers will give you the guidance on whether buying a home will work for your lifestyle and finances now and in the future.
Here are a few questions to test your readiness:
1. How Is the Real Estate Market?
The first issue a potential home buyer needs to address is whether real estate prices are dropping or if prices have stabilized. Timing the market is difficult, but if you have the nerve to wait until the time is right, you could snag a great deal.
If real estate prices are in a prolonged slide, buying a new home might not be the best idea. But if prices are just starting to tick upward, buying a house while prices are low is the ideal situation.
2. What Is Your Cap Rate?
Capitalization rate, or cap rate, is the rate of return on…
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