By Daily Mail (U.S.) | Created at 2025-01-05 00:56:33 | Updated at 2025-01-06 21:51:34
1 day ago
Dave Ramsey has said homebuyers will have a great year in 2025 if they can wait to buy property in the later months of the year.
According to Ramsey, the best time to get on the property ladder was traditionally August or September as prices tend to fall in late summer and early fall.
Fewer buyers are looking for properties at the time, and inventory remains high after a spring selling season.
The finance guru said in a blog post that buyers should avoid buying in hot housing markets.
The worst time to buy would be the late spring and early summer, due to an influx of prospective buyers all hunting for homes, meaning an increase in competition.
Ramsey added: 'Many home buyers, especially those with kiddos, want to buy a home in time to get moved and settled before the school year starts.'
According to the National Realtor's Association, the best time to buy a home was around September last year, when home prices had fallen nearly $15,000 since July.
The finance guru said in a blog post to his website that buyers should avoid buying in hot housing markets
According to Ramsey, the best time to get on the property ladder was traditionally August or September, as prices tend to fall in late summer and early fall
Ramsey urges potential buyers to wait to for the even colder months of the year, if price is your main concern.
He added: 'If the best time to buy for you means getting the lowest price, be sure to slip on your warm woolen mittens before you go to showings.'
As a final note, he also said that the best time to buy is also dependent on being in a financially solid position to do so.
That includes have zero debt, an emergency fund for any unexpected costs and that the house repayments won't be higher than 25 percent of your take-home pay.
It comes after he issued blunt retirement advice for Americans about the benefits and pitfalls of a 401(K) and IRA retirement plans.
He said that both plans are great ways to build wealth for retirement, but it is crucial to understand their differences and how they can work together before investing.
A 401(K) workplace plan is sponsored by an employer, he said, and often involves the company matching contributions taken out of workers' paychecks.
The money you put in is tax-deferred, which means you will not pay taxes on it until you start taking funds out in retirement.
According to the National Realtor's Association, the best time to buy a home was around September last year, when home prices had fallen nearly $15,000 since July
The Ramsey Show host is known for his blunt financial advice
A Roth Individual Retirement Account (IRA), on the other hand, is an account which you can open yourself to save a certain amount of after-tax dollars per year for retirement.
'When you hear the word Roth, your ears should automatically perk up - because a Roth IRA allows your savings to grow tax-free,' said The Ramsey Show host.
'That means once you turn 59 1/2, you can withdraw money from your account without owing a penny in taxes.'
With a Roth IRA, you also do not have to make Required Minimum Distributions (RMDs), which means you can let more of your money keep growing over a longer period of time, Ramsey said.
When it comes to 401(K)s, the main advantages are the higher contribution limit - which is even higher for over 50s at $30,500 for 2024 - and the fact that you invest in the account with pre-tax dollars, which lowers your income tax bill.
'Probably the best thing about a 401(K) plan,' Ramsey said, 'is that your employer can match your investment up to a certain amount. That's a 100 percent return on your investment right off the bat.
'Matching isn't required by the government, so not all employers offer it. If yours does, make the most of it. Don't overlook free money!'
