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The year 2020 has been a turbulent one right from the get-go. From rising tensions between the U.S. and Iraq to raging bushfires in Australia and an almost-unprecedented locust swarm in East Africa, the whole world is in some sort of panic. And that’s not even mentioning the worldwide coronavirus pandemic. But is there something to look forward to in the real estate world? More specifically, is the real estate situation any good this year for those wanting to buy another piece of property? Should you be buying a second home in 2020 at all?
We at Divine Moving and Storage can help you out in deciding what your best course of action should be.
What the experts say
First of all, we can take a look at what the real estate market is like this year. Before you call up your Midtown movers and get to relocating, you should be at least somewhat aware of the market situation. So what do the realtors have to say?
It’s a well-known fact among real estate experts that trying to predict trends in the distant future (like, say, an entire year) is not really reliable. The market is prone to sudden shifts, even despite confidence that some have in its trajectory.
All the same, there are some general trends that you can lean on at least a little bit. Namely, forecasts tend to be fairly optimistic whenever a year begins, but they taper off to more moderate expectations as the year progresses.
Judging by what little we have to create any sound conclusion, buying a second home in 2020 is feasible, although not exactly an amazing opportunity. Mortgages will be at a tolerable level and new houses should still be built. That said, many of those homes will fall directly into realtor companies’ hands, and not all places will enjoy great buying or selling conditions.
Personal considerations for buying a home in 2020
Even when all the pieces are in place, that shouldn’t be the driving force behind your decision to buy a second home. There are many factors in your own life that will much better dictate whether you’re ready to buy a second property. We can list off a few things you ought to consider before making the big decision.
Ask yourself why you’re thinking about buying a second home in 2020
Before you go even a step further into your home purchasing journey, ask yourself why you’re taking said journey in the first place. Does your motivation justify the need to go through all the trouble of buying another home?
If you intend to buy another house or apartment to live closer to your family members, for example, that’s a valiant reason. If you have loved ones in Manhattan, let’s say, and you want to stay in touch with them, moving to Manhattan would be a great idea. It doesn’t even need to be family-related. Maybe you just need to live in a different setting (seaside, mountainside, somewhere colder…). That is also a perfectly legitimate motivation.
But are you only up for owning a beach house you’ll be visiting a few times every year? If so, buying a second home will only leave you in tons of debt. You have plenty of more affordable options available, from renting to simply going to a hotel.
Do you have the cash to buy a new home?
The most obvious concern for you when buying a second home in 2020 should be the money you’ll need. And by money, we mean actual cash, not loans. You see, having the money to give for another place upfront makes the purchase much easier. You’ll be able to buy up the home right away, call up your Chelsea movers, and call it a day.
Loans, on the other hand, involve a lot of risks. Mortgages, for example, add an entire layer of liability that lasts a very long time. The mortgage company will expect their payment every month, no matter what happens in your life.
Do you have the cash flow for maintaining a second home?
People looking to getting another home tend to fixate on the home-buying part. But just buying the place is far from the only expense you’ll need to cover. As you likely already know, maintaining a home costs a lot of money over time. And by having two pieces of property to look after, you effectively double those expenses.
Separating a special maintenance and emergency fund for your second home would be the best solution. However, you need to make sure that your income can feed this fund. Even if the new home is smaller, you’ll still need to cover plenty of expenses. If it can’t, then you should consider your decision to buy another home more carefully.
Should you buy a second home in 2020? Recap
So, should you be calling local movers NYC has to offer and start organizing your new home? Here’s what you should know before deciding to make the big purchase:
- the market is fairly good this year (for now)
- You need to make the buy and the ensuing costs worthwhile
- Having cash to give right away trumps making loans.
- You’ll need to have available cash for maintenance purposes
Overall, buying a second home in 2020 may be a good idea if you’re willing and able to meet all the criteria for hassle-free homeownership. If you do, then there’s little stopping you from making a sound decision at the moment.