Boston Condos for Sale
Is now the right time to buy a home?
The downtown Boston condo market is booming and many Boston condo buyers are looking for a new home. One key reason the housing market is prospering is low mortgage rates. But there are other factors would-be homeowners need to consider when deciding whether now is a good time to buy.
1. Consider Population Growth In Downtown Boston
When considering an investment property, look at the fundamentals like population growth. When people are moving to an area in droves, the demand is high and we have a healthy market for Boston condo buyers to find the right properties and get involved.
People who are interested in buying a Boston Back Bay condo for sale as an investment property should look at rent projections in the area. Properties may be hard to make profitable today, but if rental rates are projected to climb, the property stands to become profitable over time. If the property is in good shape, lock in the low mortgage rate now and be diligent about raising rents as the market supports it.
3. Don’t Wait For The ‘Perfect Time’ To Buy a Condo
When mortgage rates go up, the price of Boston condos for sale eases. It is very hard to plan the perfect time to buy. If Boston Seaport Condo buyers are waiting for prices to decline or for a market correction, they may be facing higher interest rates. If a prospective buyer needs housing, they should buy when they would like to. A large part of homeownership is intrinsic and not financially driven.
4. Examine The Timeframe of Your Boston Condo Purchase
In nearly every market, purchasing a Boston Beacon Hill condo for sale is a great long-term investment. The biggest consideration for Beacon Hill buyers, aside from basic affordability, is the timeframe for their investment. If you are thinking of selling in fewer than five years, you are taking a serious risk of losing equity. If your time horizon is 10 or more years, your chances of substantial value appreciation are greatly increased.
5. Project Future Job Stability
For most families, job stability should be the main consideration when thinking about buying a home. Careers primarily dictate which area a family lives in and for how long. It’s a cliché, but it really is about time in the market, not timing the market. Despite some highs and lows, the real estate market has gone up over a long enough period of time.
6. Consider The Primary Motivation To Buy a Boston Condo
When debating on whether now is a good time to buy a Boston condo for sale, it’s important to consider not only mortgage rates but also what the primary motivation for moving is. In strong Boston condo seller’s markets, it’s important to be prepared to act quickly, have your finances in order and be clear on what your needs and wants are. Your level of preparedness will help you navigate the competitive market
7. Watch The Boston Real Estate Market
Right now it comes down to a Boston condo buyer’s personal risk tolerance. In such a competitive market, buyers are writing offers over the asking price, putting more money down and even waiving contingencies. Those are all great strategies, but buyers shouldn’t feel trapped into doing them. If they aren’t comfortable, they should keep watching the market so they’re ready when it begins to cool.
8. Look At Migration Patterns In Your Boston Neighborhood
When I’m contemplating buying a Boston condo for sale, I always consider the migration patterns in a market. One of my favorite resources is the U-Haul website, which lets you know where people are moving to and from. This will help you determine if there is going to be a strong base of renters in your market. If I can’t rent it out, I’ll keep looking even if a property is priced low.
9. Track Boston Condo Cycles
Consider Boston real estate cycles. Are we in a period of inflation or deflation? Rental expenses increase during inflationary cycles, meaning your money will buy you less tomorrow than it will today. Hard assets, like real estate, provide an excellent hedge against inflation. If you can afford to own instead of rent, your home can provide a solid foundation for your financial future.
10. Stick To Your Specific Boston Condo Criteria
Low mortgage rates are the bread of butter of any excellent Boston condominium purchase. That being said, buyers should focus on the specific property they want to acquire, not the generic terms of the market at large. To use an analogy: “just because the pond is full of fish doesn’t mean you’re going to catch a big one.” Make a list of your investment criteria and stick to it.
I always recommend buying a home that works for you no matter what the market is doing. If you need a home and the layout and area are good fits, then timing the market is hard. As land is developed, areas in prime locations increase in value while outlying areas still offer affordable homes.
12. Trust Your Real Estate Partners
Trusting your Boston real estate partners is absolutely imperative. If you trust the people and teams around your investments, you’ll be more aware of and engaged in the operation of your home. If not, risks are exponentially increased (and so is lost sleep)
13. Factor In Boston Condo Property Taxes
Once you buy a Boston high-rise condo, you’ll be responsible for paying property taxes as long as you own the property. It is crucial to look at the annual property taxes for a property and make sure you are comfortable with the amount. Factor this into your calculation as taxes are an annual expense you cannot get away from.
14. Carefully Consider Condo Affordability
At the end of the day, the most important factor is affordability. Can you afford to buy? It is a two-part question where you have to consider how much cash you have/are willing to put into a transaction and how much you are willing to pay monthly. Yes, rates matter when thinking about the monthly payment, but so does the price point.
15. Don’t Overthink It Your Boston Condo Purchase
If the home, and neighborhood fit your needs and are within your budget, go for it. It’s difficult, if not impossible, to time the real estate market to buy on a downturn (and there are other limitations during a downturn anyway). Supply and demand will drive prices higher in the near future even if interest rates climb a bit. Real estate historically goes up—so get in!
Source: Forbes
