Delaying a Home Purchase
While purchasing a home is a sound investment there are legitimate reasons why delaying a home purchase might be the right decision for you. It doesn’t make sense to purchase a home if you will need to sell that home before it appreciates enough to have covered buying and selling costs. Real estate commissions generally run around 6% of a home’s sales price, and seller’s closing costs about 1.5%. Assuming the average 5% annual real estate appreciation you can see how easily these costs can exceed appreciation if you must sell your home soon after a purchase, especially if you made the minimum down payment. The last thing you want to do is have to cover the cost of selling your home.
In such a transient city there are many people moving to the Las Vegas Valley each year that want to purchase a home. There are a good number of benefits to living in Las Vegas as opposed to other parts of the country. Low housing and living costs, mild climate, short commute times, entertainment around every corner, and much more. While you may be set on purchasing a home in Las Vegas, and that this is where you want to live for many years to come, it may be better to delay a home purchase for a few months. Many people new to Las Vegas purchase a home immediately, only to wish they had waited. After you get to know this unique city you may find that a different neighborhood, area of town, or type of home would have been a better decision. Get to know Las Vegas and it’s different areas to see which area fits best with you before deciding where to establish yourself.
Even in the best job markets if you have an uncertain job future it may be best to delay a home purchase. Did you recently obtain a new degree? Expecting a promotion? Has your company announced any type of “reorganization” or “restructuring?” All of these are reasons to delay, at least for the time being, a new home purchase. While no job is secure for a long term, you want to have an accurate picture of your employment for at least the next few years to know if it is a good time to make a financial purchase of this magnitude.
One of the largest reasons for marital problems is financial. In an already strained relationship the addition of a 30 year loan can cause splits. When new home purchasers divorce they often must sell their home in an effort to divide assets. Doing so before the home has had time to appreciate can add fuel to a flame creating a larger financial burden in an already difficult situation.