Times have changed for all home buyers. The days of being able to receive very substantial market equity in a three year time span has all but disappeared in most areas. In the Kitsap County area we have been lucky that our market although slow and undergoing a huge price correction we haven’t been as hard hit as areas like Florida or California. However, we hear daily the horror stories of the housing market which has most active duty military wondering if now is the right time to buy.
Over the last 5 years we saw the active duty member feel comfortable purchasing even with a PCS due in a short three years because of the escalation of value in several markets. With that now gone what does an active duty member do? The decision to purchase is tougher today than it was.
But, with education, pro/con honest conversation and the help of several real estate experts you should be able to make the right decision.
So as a military member do you purchase a home?
It is a very complicated process which needs some investigation and education before making that decision. You should ask yourself some questions like these at the minimum.
These might be considered some of the “con” type questions.
- Do I have upfront money to buy a home?
- Can I get financing?
- Is my tour of duty going to be longer than 3 years before the next PCS?
- Will I have the opportunity to do another tour here or will I have an opportunity to come back?
- If I had to be a long distant landlord would I have the time or resources?
- Could I afford a property manager?
- What if I had to pay the mortgage for 2-3 months while the home is waiting for new renters?
These might be considered some of the “pro” type statements.
- Being VA eligible military members can still receive a ZERO down home loan.
- Under most circumstances the interest on a home loan is tax deductible (contact a CPA)
- Pride of home ownership is amazing.
- Building equity prior to retirement.
Do you own your home? Are you afraid of having to sell in 3, 4 or 5 years? If you are smart and do the right things then home ownership for a military member should not be scary!!!!