1. Interest rates are at an all time low.
2. There are still good deals on homes to be found. Right now it is a buyer’s market.
3. investing in a home will provide solid equity for you over the year’s in long-term growth.
4. Inflation is a given, buying a house can stave off some inflation the longer you own your home.
5. Buying what you want rather then renting what is available is always a better deal.
6. Purchasing a home means you can make the changes you want to your home; something that is rare or not allowed when you rent a home.
7. Buying a home is like paying yourself as you build equity in your home.
8. Right now pricing is the best it has ever been and there are many homes to choose from for sale.
9. Owning a home is beneficial at tax time; you receive tax deductions on the mortgage interest, you can deduct the real estate taxes you pay on your home, and when you sell you may get a tax break on capital gains. (If you itemize your deductions)
10. The real estate market is going to improve. Supply and demand will eventually equalize.
We’re all getting our information to our accountants this time of the year. This year you may be eligible for a tax credit if you bought a home last year.
In 2008, congress passed a home buyers tax credit, which has been changed and extended over time.
Some factors to consider to see if you are eligible:
- You must have signed a contract to purchase your primary residence by April 30, 2010.
- You had to settle on the property by June 30. Congress added an extension, up to September 30, with stipulations.
- First time homebuyers credit can be up to $8,000.
- Repeat homebuyer credit can be up to $6,500.
- First time and repeat home buyer are limited to homes purchased for less than $800,000.
This is just a reminder for those of you who purchased last year. Check with your Accountant for details on the above items, and YOU may save!
Think about your personal situation. Determine from that if you are ready to take advantage of this buyers market
Think long term-I believe you should be thinking in the terms of 7 years, or more. If buying a primary home, or investment property, see yourself keeping this investment over this time-the days of instant appreciation are gone for now.
Historically, real estate has proved to be a solid investment, and it still is.Smart people are buying now. Prices are down, lots of inventory, interest rates low, so you have the advantage to find a good deal for yourself. Talk to your lender and ask what programs best fit your needs. I have people tell me money is not available, but it is. You do have to have good credit. The better your credit, the better your rates and terms for financing. If you do not have a lender, call Christine or I and we will have one call you. If your credit is less than perfect, we can still help.
Really, there is no best time to buy, just as there is no best time to sell. Everyone’s situation is different, so just evaluate your situation, and you will make the right decision.
When you think about it, there are good options now, both in low rates and many options in housing, or investment opportunities.