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Investing in real estate makes a lot of sense, as long as you plan to live in or keep the home for at least five years. Interest absorbs most of the monthly payments for the first five years. After at least five years, you will begin to reduce the principal debt.

Most of us are not big monthly money savers. Dr. Eli Beracha of East Carolina University, who co-authored the paper with Ken H. Johnson of Florida International University, said that, according to research, buying a home is better than renting it because a mortgage becomes a forced savings account.

Dr. Beracha added that people who rent must invest their savings. The research found that most people who save money do not invest. Buying a home now is a better option, especially with lower interest rates and prices.

Reliable and educated sources of information such as Forbes magazine (The Next Mortgage Crisis); Wall Street Journal (Time to buy that house); Market Watch.com (Now Could Be the Best Time to Buy a Home) and JP Morgan Market Insights suggest there’s never been a better time to buy a home.

Consider the following

• The price of the house you choose must be in line with comparable prices;

• Take a good look at the state of the house. Will it cost you a substantial amount of money to restore?

• How long has the house been on the market? The seller may be eager to sell at a lower price;

• Make sure your offer is affordable. Consider all your living expenses and make sure you can afford the fee. An offer may not be accepted. The seller is more likely to accept a fair price related to market value.

It is highly recommended to rely on the knowledge of a real estate agent. The real estate agent will negotiate on your behalf.

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