Your down payment fund was safe in cash. Perhaps they had planned the 2020 season for buying their own home. Just when the perfect home came on the market, the corona virus turned the world upside down.
Should You Cope With Your Purchase?
Whatever happens now has not yet reached the real estate market, but it will likely do so. Shares have fallen, entire industries are taking a break and small businesses are hit.
We don’t know that much about what the next few months will bring, including whether the crisis will be over in the next few months. However, the economic impact of the virus will be far-reaching, affecting everything from employment rates to the willingness of buyers and agents to take part in the open house to the question of whether sellers have listings. Many people will have less money and possibly less access to it. Quicken Loans, the nation’s largest home loan lender, said earlier this month that he currently has no plans to change underwriting – leaving the possibility open that it and others could do so in the future.
All of this may make it seem strange to think about buying a house. But there will be many people who are convinced of their job security – or who are looking for job vacancies that have not yet evaporated. There will be others who make room for new family members or try to be closer to older ones who may need care.
Last month, Elaine Cicora and her husband’s year looked something like this: sell her house in Macedonia, Ohio, later in the spring; buy a newly built one not far away and move in August; Withdraw funds from retirement accounts properly when and when necessary; and fly to Austin this month to march her eldest daughter down the aisle.
Now they bring their house to market earlier in the hope that they can catch buyers before they worry. Ask your contractor about disrupted supply chains as you consider what to do with the next deposit at that location. Thinking about stopping both buying and selling; watch the markets with growing concern; and thinking about canceling their plans for Texas.
“If it were just one or two of these things – stocks, out-of-state wedding, two home deals – I wouldn’t go mad,” she said.
At the end of 2008, many property buyers also tried to weigh several moving parts. This crisis was different – the S&P 500 would lose half of its value from its peak, and property prices would also crater.
This time this is not the case (at least so far). And what has happened since 2008 should now offer us some comfort.
That December I spoke to three couples who had taken the plunge and suggested that five to ten years later we would probably look back on this time as an incredible opportunity to buy.
How do these couples see things now? Two are happy that they made the leap when things looked very bleak, and the third didn’t say anything – but in their neighborhood in Los Angeles, house values have doubled or more in those twelve years.
Jaime and Michael Proman bought a house in Minneapolis in 2008 and moved out of a 450 square meter studio apartment in New York City. He grew up in the twin cities and they said at the time that it felt like they were making a permanent move.
Minnesota is still home, even though they haven’t stayed in the house they bought. When she and her expanding family traded in 2013, their home was actually lost in value. If they had waited a little longer for the move, they would have been offset by rising property values - but their new, larger house would have cost so much more.
Many people considering buying now can be affected by other home ownership benefits: control and security. You get a stable monthly housing benefit payment – and low interest rates can mean you don’t even have to refinance – and the convenience of knowing that the place is yours as long as you make that payment.
This certainty has proven crucial for another couple from Minneapolis, Lacey Mamak and Alison Nowak. They scraped a 3% down payment in 2008 to buy an 800 square meter house and they stayed there. You now have a mortgage payment of around $ 1,100.
At that time Mamak was in an additional position, but is now an academic librarian on the tenure track. Nowak is an additional instructor who also does design and communication work. Rents in the area have risen so much that they think they would have been priced out of town or forced into other work areas if they hadn’t bought.
After deliberations in the past week, they were intensively involved in the emotional resonance of home ownership. First, it was grateful that their fixed costs enabled them to do the work they loved. Then there was empathy for people who have to or want to move and are afraid – this time for their health as well as for their finances – and are thus at the crossroads where the two were 12 years ago.
“People tend to buy a house to be an adult, and if you can’t afford it, you’re somehow not an adult,” said Mamak. “But there are so many other factors and powers now, and it has nothing to do with your personal worth or how grown up you are.”
Note: We are not the author of this content. For the Authentic and complete version,
Check its Original Source