Instead of telling you that anytime is a great time to buy Columbia SC real estate, we're here to tell you when it's NOT necessarily a good time to buy Columbia SC real estate.
Imagine you're a new college graduate right out of school with a great job with security to go with it. You have a good credit score, and you have money for a down payment, either through savings, or a gift from relatives. Sounds like a perfect Columbia SC real estate prospect, right?
Add in one other thing. A $60,000 student loan that needs to be paid back.
You could pay off that student debt and have a healthy emergency fund or you could go all in and buy a property while simultaneously dropping your bank account to $0 (literally).
Other Things to Consider Before Buying Columbia SC Real Estate
The number one thing to consider when you're in debt and deciding whether you should buy Columbia SC real estate or not is, how stable is your income? You can't always control the state of the Columbia SC real estate market, but it's easy to figure out how in demand your profession is.
If you're in a high demand profession, buying Columbia SC real estate when you're young and just getting started may be the perfect move to make. On the other hand, if you're in a profession that could, and very likely will, cause you to relocate frequently to continue moving up, buying Columbia SC real estate may not be the smartest thing to do unless you have plenty of time and reserve funds when it comes time to sell and move on.
When you're young is the time to take on greater risk, not when you're 50 and looking at a million dollar home. If in doubt, seek advice from a financial planner or expert. We will be happy to sit down and discuss your particular situation and give you an honest opinion as to whether now is the right time for you to buy Columbia SC real estate or not.
For other tips on buying Columbia SC real estate, check out our Columbia SC home buying tips by clicking on the Columbia SC Home Buying Tips link to your right under Columbia SC Real Estate Categories.
A lot of Columbia SC real estate experts are starting to whisper that dreaded word again with the Spring selling season just around the corner. Some are saying we are looking at real estate bubble 2.0 with the continuing dwindling supply of homes and more buyers trying to get into the market.
To call the Columbia SC real estate market one that is headed for another bubble may be jumping the gun a bit, but certainly we'll keep a sharp eye on the market for you and keep you posted on anything we see that could signal another Columbia SC real estate bubble in 2014.
To stay on top of market changes and conditions that may affect Columbia SC real estate this year, check out our other latest news articles by clicking on the Columbia SC Real Estate News link to your right under Columbia SC Real Estate Categories.
For those who don't understand the term "tapering", in plain English, here is how it could affect Columbia SC real estate and mortgages going forward.
Tapering means that the Fed will reduce the amount of mortgage and treasury bonds it purchases each month. It was doing this in an effort to stimulate borrowing and economic activity by keeping interest rates low. Thankfully, the tapering will be done slowly vs. a quick stop. A fast stop would be terrible for Columbia SC real estate.
The Fed has a way of talking out of both sides of the proverbial mouth when it says things like, "The economy is growing and consumer/business spending is up, but the housing sector is starting to slow down slightly. Inflation is lower than the Fed would like to see, but its long-term analysis is healthy."
The usual "yeah, but…" applies just about every time the Fed speaks. With tapering, there's no exception.
Pointing to ongoing, stable improvements in economic activity and labor market conditions since the start of its latest quantitative easing program in September 2012, the committee agreed to scale back its purchases of agency mortgage-backed securities (MBS) to a pace of $35 billion per month; at the same time, purchases of Treasury securities will shrink to $40 billion per month. Together, the cuts represent an overall reduction of $10 billion in purchases each month.
Where Will Interest Rates Go For Buyers of Columbia SC Real Estate?
The decision brings to an end months of speculation over when the Fed might finally decide to pump the brakes on its stimulative strategy. Now, the ongoing debate will likely turn to the expected timeline for further cutbacks — probably with little input from the FOMC, which insisted that asset purchases "are not on a preset course."
Essentially, the Fed is now saying, even with the tapering announcement that came as no big surprise, that they are committed to keeping interest rates low for quite some time.
So again, "we're cutting back, but keeping rates low…"
How all of this will affect the Columbia SC real estate and mortgage markets is anyone's guess. We'll keep a sharp eye on things for you and pass along anything that may significantly affect mortgage rates and the overall Columbia SC real estate market.
Get more news on Columbia SC home prices, along with other Columbia SC real estate news and information by clicking the Columbia SC Real Estate News link to your right under Columbia SC Real Estate Categories.
Taking a look at Columbia SC real estate predictions for 2014, experts from the Urban Land Institute explain how the rest of the housing recovery will play out in their Emerging Trends Real Estate report. The information came from surveys and interviews with real estate developers, investors, lenders, services and builders.
Trulia's chief economist, Jed Kolko, says buying a home in 2014 will be less affordable as prices continue to rise and rental activity picks up in urban areas.
To stay abreast of market changes and conditions that may affect Columbia SC real estate in 2014 and beyond, stay plugged in to our site and check out our other articles by clicking on the Columbia SC Real Estate News link to your right under Columbia SC Real Estate Categories.
If you're thinking about investing in Columbia SC real estate, it's no secret that homeownership requires major financial planning and comes with sacrifices. Experts suggest that you ask the following questions to determine if buying a Columbia SC home is the right decision and how to make the process as smooth as possible.
Is This The Right Time to Buy Columbia SC Real Estate?
The cost of owning Columbia SC real estate is a lot more than just the monthly mortgage payments. Buyers need to be prepared to cover costs like maintenance, decor, repairs, insurance, and possibly homeowner's association fees.
Just because you can get a loan does not mean it's the best thing to do. Buying Columbia SC real estate can be very emotional, but sometimes it's best to wait until things are better positioned in life.
What's really important to you and what things are you really willing to do to save?
Exactly Where Around The Columbia SC Do You Want to Buy?
If you know and understand the Columbia SC real estate market you're buying in, if you know the options to accumulate money, then you can figure out a game plan. This game plan may extend over six, 12 or 36 months.
The amount of time a buyer plans to spend in their new home is important when it comes to recovering closing and moving costs – which can take up to seven years.
How Much Can You Afford?
Lenders need to see sellers can afford the mortgage — long gone are the days of unverified loans. Before looking for Columbia SC real estate, get pre-qualified and know your price limits.
How is Your Credit?
Review your credit history and address any issues. Know what you need to do to build credit if you don't have a lot of it. Without good or enough credit, you may need a cosigner on your mortgage. Good credit not only helps get qualified for a mortgage but it also helps keep the interest rate low on the mortgage.
Have You Saved Enough?
If buying Columbia SC real estate is your goal, it may take 5 or 10 years to be able to save enough for your down payment. Experts suggest putting 20 percent down on a new home. Just because the bank will loan it to you doesn't mean you should take the loan. If you aim for the 20 percent down, the worst you can have is money in the bank.
For more tips and articles concerning buying Columbia SC real estate, click the Columbia SC Home Buying Tips link to your right under our Columbia SC Real Estate Categories.