There are many trade offs as well.
Here’s how to decide if the time to buy real estate in Asheville, NC is right for you.
One thing we all learned from the housing market bubble bursting … home ownership isn’t such a “no brainer” after all.
Many who buy real estate in Asheville, NC are so thrilled with their decision.
Buying Asheville NC real estate does come with responsibilities.
The stability of putting down roots means less flexibility.
The opportunity to build equity increasing the risk of losing money.
Interesting fact — homeownership in America is at its lowest rate since 1995.
Down to 65%, according to the Census Bureau, from 69% in 2004.
1000s of likely buyers are holding off on the decision to buy real estate in Asheville, NC.
Several major factors for this include:
tighter lending standards,
And high home prices in many cities.
5 five questions you need to ask before leaping into ownership.
1) Is my financial house in order?
Already struggling to pay your bills?
Buying real estate in Asheville. NC. worsens your money issues.
Best case scenario …
you’ve saved at least 10% for a down payment.
Plus pay private mortgage insurance if your down payment is less than 20%.
And don’t forget saving for retirement and emergency fund.
The truth is this.
If you’re unable to save for a down, then don’t buy real estate in Asheville, NC.
John Vento author of Financial Independence (Getting to Point X): An Advisor’s Guide to Comprehensive Wealth Management advises the following,
“You have to prove you have the discipline and ability to save. One of the big problems that led to crash of 2008 is we forgot about this principle.”
2) Am I sticking around for a while?
Received wisdom used to be “buy real estate in Asheville, NC if you stayed three to five years minimum.
Today, financial planners are recommending an even longer window. More like seven years to offset the transaction costs of buying.
Want to buy real estate in Asheville, NC?
You must consider the costs:
securing the loan,
closing on the sale,
And the miscellaneous items (fresh paint, new curtains)
All that adds up to thousands of dollars easy.
Time to sell?
6% is typical in real estate sales commissions – a sizable amount.
The history of home price appreciation tells us 5 years is the average break even point.
The raw numbers matter of course.
It’s worthwhile to ask if you’re ready to own in your city of choice.
3) What is the after-tax cost of owning?
Let’s presume you’re on solid financial ground and ready to make a longer-term commitment.
What’s the next step?
Get a realistic estimate of what you can expect to spend monthly.
Plug in the home price minus your down payment into a mortgage calculator like this one.
Most calculators also allow for property taxes and homeowners insurance.
Your taxes or insurance higher than the national average?
Then plug in numbers based on what’s realistic for your market.
Don’t forget there are tax advantages too.
Itemize your deductions and your mortgage interest and property taxes are deductible.
When you sell, you can realize up to $250,000 in profit (double that if you’re married) before you owe capital gains tax.
4) And what are the hidden expenses?
Unseasoned Asheville real estate overlook some hidden costs.
Four out of five buyers of new homes can expect to pay homeowner association fees.
This adds hundreds of dollars to your monthly expense.
Most single-family home owners should be wise when they budget.
money and time,
for routine maintenances costs,
And for big-ticket projects, such as paint jobs and new roofs.
5) What’s happening in my market?
The real estate market varies from one city to the next …
even from one neighborhood to the next.
Most U.S. cities have reasonable home prices.
Some cities (i.e. San Francisco) have seen their home prices bounce back to near boom-time highs.
At the same time, the rental market is as competitive in a lot of cities.
For renters, an improving economy is a Catch-22; as their incomes go up, so too does their rent.
For many buyers, that’s all the reason they need to get off the fence and into the housing market.
Additional Resources to help you buy real estate in Asheville, NC
How to Buy Real Estate in Asheville NC With No Money Down
The 10 Best Ways to Buy Real Estate In Asheville, NC
We welcome any and all questions about when, where, how, what and why to buy real estate in Asheville, NC.