Coping in Tough Times: Buy a House or Not?
Is now a good time to buy a house? I'm worried about what would happen if I get laid off.
Lots of people are taking a look at buying now that prices have fallen iin South Florida. Let's get specific, because that will help you decide.
Start by figuring out what the potential mortgage payment will be on a new loan -- not just the principal and interest. Realize that your property tax bill will go up along with your homeowners insurance premium when you buy a more expensive home. Both of those will add a substantial amount to your monthly expenses
.
Now, do a "worst case" scenario to see what you could afford if you or your spouse lost a job.
Next, consider your cash situation. You may have enough to make a down payment, but what about emergencies? Remember that owning a home means fixing something very often. And the more the house costs, the bigger the repair bills.




Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.
Comments
BUY NOW! We have finally reached the bottom, and the prices are starting to creep up a little bit. Check the prices in Zilow, and you will see many green arrows in the last 30 days for many cities. You wait, and you may never get as much inventory and low prices as you have right now.
Posted by: Alex | January 13, 2009 12:51 PM