Why You Shouldn't Buy a Home

There are several individuals who will opt to buy a home this year. However, 2009 may not be the year to purchase your home. Given the strain of the economy, it may be wise for some to wait before taking the plunge into homeownership. There are ten good reasons why now is not the time to purchase a home.

Decline in property value. While property is still considered an asset, the value of a home and property has significantly decreased, especially in recent years. Many may think this is a great time to buy because of this but this not necessarily so. Your home insurance company will not insure the home for more than what is "worth".

The rate of foreclosure is downright frightening right now. No one anticipates their home being foreclosed upon, but that doesn't mean that it can't or won't happen. You may be able to purchase a foreclosed home for less, but there's nothing saying that you won't go into foreclosure yourself.

Directly related to foreclosure, is job uncertainty. Unemployment has been steadily rising, many companies are forced to lay off or close their doors. Job security is important when embarking on such a large investment.

Limited homeowners assistance. The more dire the economy becomes, the less funds for needed assistance. As it stands, there are more in need of assistance than the amount of assistance available.

Another thing to consider is relocation. If for some reason the homeowner could relocate to keep employment options open, it would not be easy to resell the home. You risk taking a loss by having to sell the property for less than what it is worth.

Renting may be a cheaper more efficient option right now. The average mortgage payment has drastically increased, renting can be more feasible. As a matter of fact, an individual could save up to 50% by renting.

It may be difficult to obtain a loan. Those who can obtain a loan may not be able to get desirable loan rates and terms. High interest rates, larger down payments, and risky lenders add to this dilemma.

The length of time it takes to pay a mortgage. At one point in time, the average mortgage was paid in 15 to 20 years. This isn't so anymore. Those with a mortgage can expect to pay for about 30 years.

Homeownership is more permanent than other housing options. If costly repairs are needed or the home is damaged, the owner is responsible. Thus, there are more costs associated with homeownership than the mortgage.

Last, but not least, homeownership is a huge responsibility. That in itself is a good enough reason to think before you buy. These may only be a few of the reasons you may not want to purchase a home this year. No matter what you decide, purchasing a home is a decision that shouldn't be taken lightly.