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Money Q&A: Is it smart to buy a house in this market?

Q.

The Nest Q&A

Is it wise to buy a house in this market? How do we determine if this is the right choice in our current financial situation?

A.

We've always had the same advice on housing. Even in 2007, when our first book, On My Own Two Feet, came out, we said to remember a few things about homeownership: 1) Save enough to make a 20-percent down payment. Housing prices don’t always go up. 2) Make sure you buy a home that you plan to live in for at least five years. The costs to buy and sell a home are big enough that the more time you have, the better. 3) When you buy a home, aim to have your total housing costs (including property tax, insurance, and maintenance) equal 30 percent or less of your gross income, and strongly consider a 30-year fixed-rate mortgage.

Get Financially Naked, money Q&A Nestperts: \Manisha Thakor, MBA, CFA & Sharon Kedar, MBA, CFA, authors of Get Financially Naked: How to Talk Money With Your Honey

-- Manisha Thakor, MBA, CFA & Sharon Kedar, MBA, CFA

See More: Money , Money Q&A , Budgeting , Getting Out of Debt , Buying a Home