Most people buy a home only once or twice in their lifetime, and it rarely makes sense to buy if you expect to move within two years. Most buyers live in their new homes an average of seven years or more. During a housing slump it may not seem like real estate values will ever go up, but it usually does. Homes appreciate about 4-5% per year as a fairly general rule.

Buying property at present isn’t for sissies. However there’s a massive supply of homes priced at levels not seen since 2004, so you can take advantage if you have the money and can hang on to a home for five years or more. One blogger referred to the glut as, “You could argue everything’s on sale today.” Just follow the home buying strategy below, and you too could profit from buying a home.

* Location

What type of neighborhood would you like to live in? What school district would be suitable for your family? Where do you like to shop?

You should also pay attention to factors such as likely capital growth, buying and selling costs (including taxes), interest rates, and how attractive the location will be for tenants and future buyers.

* How much house can you afford?

Even if you’re short on funds, the home buying process will go smoothly if you get familiar with the real estate market and narrow down your choices to fit within your budget.

How much cash do you have available for a down payment? How much do you anticipate closing costs to be? The answers to these questions will help you determine what kind of mortgage you can get.

* House Size

How many rooms do you need? Is there a special requirement for a member of the family who is medically challenged? Remember a heart patient cannot climb stairs to reach his bedroom. An infant’s room needs to be right next to its parents. If you have a physically handicapped family member who uses a wheel chair, you will need a ramp to enter and exit the main door. Some personal considerations will also go into home buying.

Therefore buying what you need in a more prominent area may give you more financial reward than getting what you want in a less attractive locality.

* Find a way to finance your new home

While a loan from the bank is always an option, saving up on the deposit will reduce your financial compulsions. When home buying is a priority with you, make saving for the home a priority as well. Put aside a fixed sum from your earnings every month to build up your nest egg. If you save about 10 to 15 percent of the house cost, you will get a loan faster, and at a lower interest rate.

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