When is a Good Time to Purchase Real Estate?

Purchasing a home is a huge investment that has significant ramifications throughout a person’s life. The widespread availability of properties for sale online has certainly simplified the process, but it hasn’t reduced the burden of properly determining when the right time to buy is.

 

Buyer’s Market

The right time to buy is during a buyer’s market. A buyer’s market is a period when housing prices and mortgage rates are below the three-year averages for that market. Keep in mind, that the state of a market is very dependent on local factors. In other words, if purchasing a home in Malaysia, then it’s necessary to keep up with the current News on Malaysian Property in order to determine if the market favors the buyer. Market conditions in the U.S., for example, will have no bearing on a purchase in Malaysia.

 

Government-Sponsored Discounts

The health of a housing marketing is tied directly to the overall health of a local economy. This is why Malaysia and other governments provide tax credits, no-interest loans, low-interest loans and so forth. Potential buyers should monitor the current news on Malaysian property, and then align their buy window with the period when these government-sponsored discounts are at their highest value. It’s also beneficial for buyers to put themselves in the position to take greater advantage of these opportunities.

 

Down Payment

Properties for sale online and locally will require some form of down payment. Often, that down payment will need to be 20 percent of the buying price. It is possible to achieve a mortgage with a lower down payment, but that strategy usually has negative long-term ramifications. Buyers should first determine how much they can afford for a home, and then the right time to buy is when they’ve saved 20 percent of that amount.

 

Credit Rating

For both properties for sale online and locally, the buyer’s credit rating will determine the interest rate for the mortgage. Just a small shift in an interest rate can significantly affect the total cost of the loan. In other words, the best time to buy is when the buyer’s credit rating is ideal for their economic situation. It’s often a financially sound decision to take a year or several just to improve the credit rating prior to buying.

 

Timing

As a rule of thumb, spring is the best time to buy. It’s during this period that the market is most active. Since there’s greater competition among sellers, prices are driven down, which makes it easier to negotiate a price that suits the buyer’s budget. Ideally, however, buyers should monitor current news on Malaysian property, since there are a number of factors that can make a particular period the best time to buy during that particular year.

 

Cost to Own vs. Rent

Another general rule to adhere is that the best time to buy is when it costs less to buy, on a monthly basis, than to continue renting. If it’s cheaper to rent, then the buyer should continue to save additional money toward a down payment when the time is right.

Bonus Tips: Why Investors Are Drawn To Properties in Asia