Saturday, June 4, 2011

Deciding Whether To Buy Or Build In A Real Estate Slump | Phoenix ...

June 3rd, 2011 Posted in Mortgage Info

by Dana Cain

If you have some money saved up, then buying or building a home in a real estate slump seem like a good idea. Both have their advantages, but considering which will suit your needs best is still important.

An economic decline is not the best time to be getting into debt, so it is only advisable to get into the real estate market if you have most of the money available. Taking out a mortgage during uncertain times is not a good practice.

Buying a bigger home or in a better area that you could afford is possible when real estate was riding high. It is not unheard of to get homes at two thirds of their price a few years ago, and this can give you a good opportunity to get a home you can live in comfortably for many years.

But it?s not always ideal to have an existing home. You will be forking out money for renovations or remodeling if the design of the home may not be exactly to your liking. Replacing the fixtures and fitting that may not be to your taste can be costly. Future expenses will be high as well because repairs may need to be done and a bigger home needs more maintenance.

If you are to build your own home, then you?ll be facing a few advantages. Designing a home that will suit your needs is what you need to do such as building a master bedroom that?s bigger and more comfortable since you may only need one other room for guests if you have grown children. While designing the perfect home for your needs, bear in mind that you may want to sell your home in the future, and your ideal design may not be suitable for the bulk of the home buyers out there. Try to maintain a happy medium between what you want and what will make your home saleable in the future.

It?s not advisable to take out a mortgage since the current real estate slump is the result of the economic downturn. During these difficult times, it?s not a good idea to get into debt. If you can finance most of your purchase or building costs with savings, then now is the perfect time to get your own slice of the real estate pie. Depending on your particular preferences is whether you build or buy. A good place to start is in the area you would like to live in and you can look at existing properties for sale there. It may be a better option to build your own home if every home you see there would need major renovations in order to make it your dream home.

About the Author:

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Source: http://phoenixlivingnews.com/deciding-whether-to-buy-or-build-in-a-real-estate-slump/2011/06/

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