Timing for buying a home

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doorwarrior's picture
doorwarrior
Status: Silver Member (Offline)
Joined: Oct 13 2009
Posts: 166
Timing for buying a home

I know this has been covered in several other threads through the years but no one has touched on it for a while and conditions have changed recently.

I am trying to decide about buying a sustainable home for my family. I have been visiting this site for about three years and have been prepping for as long. I have a pretty good down payment but I also want to wait until I can pay cash. I don't like having a bank or any note holder involved if I can avoid it. I am also concerned that time is running out before a major disruption in any of the three E's occurs making buying a home almost impossible. I have a successful business(a garage door company, thats where the doorwarrior comes from) in Las Vegas that I can keep running even after I move out  of state. This will provide me with a good income until Vegas crashes.

Would it be a good idea to finance a home and partially count on inflation and my PM investments to help me pay it off in a couple of years? Or would it be better to wait another year or so, save money, wait for prices to come down further and pay cash.  If Vegas were to crash sooner rather than later finding a job and keeping the place could get difficult. With my PM's I could  coast for a few years but who knows what will happen to PM's or the job market. I know I could start another businees where ever I move to to help supplment the income.

The braintrust around here is very good at seeing all sides and I am sure I have missed things in my assessment. Thanks in advance for your help.

Rich

affert's picture
affert
Status: Silver Member (Offline)
Joined: Sep 22 2008
Posts: 100
Trade offs

Beyond financial considerations: once you've purchased the home, you can start in with location-specific preperations. 

Background: my wife and I purchased a house about 2 years ago. 

We had never grown a garden before.  We have a lot of skills to develop that really can only be developed in the context of owning property.  From a purely financial standpoint, I'm sure that we will lose out when it comes to our house.  But having a garden for the second year in a row (and all the learning and trial and error that comes with that) will [hopefully] be worth it.  Sometime in the next year or two, we're going to hopefully start raising chickens. 

If we'd rented until prices came down further, we could have saved a bunch of money, but not learned what we've learned so far about how to have a garden, how to preserve food, etc.

InCalgary's picture
InCalgary
Status: Member (Offline)
Joined: May 27 2010
Posts: 11
Err on the Side of Caution

Rich, I am going through a similar dilemma. My husband and I are looking to buy farm land in Spain (where he is originally from). Do we buy something small now and pay in cash? Buy a larger property and take out a loan?  Or wait until we have the cash to buy our ideal sustainable land?

 I have always been financially cautious and currently we are going to either try to pay in cash or if we cannot afford what we like, wait until we have the cash to buy something more significant. The way I see it is too much dept get us into this mess in the first place (a simplified version of something complex, buy you get my idea). With the global economy contracting, the last thing I want is more personal dept. Even on principal alone, I don’t like the idea. I would rather live on something small that I owned outright than live on something large that was not entirely mine.

 My advice: proceed cautiously. See what is available now for the money you currently have. You may be surprised with what you can afford. If not wait a bit, save like heck and buy when you have the cash.

Lisa

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