If you have been thinking of buying a house, but have put your dreams of home ownership on hold because of the shaky economy, it is the time to revisit that decision. There is no better time to buy, if you can manage it.
There are many reasons to consider purchasing now:
- Real estate prices are the lowest they have been in many years, so you will get more house for your money. The property that may have been out of your range last year, may be within your budget. By investing now, when the market is low, you are more assured that the value will increase over time.
- It is a buyer's market. Many homeowners are anxious to sell and will be more willing to negotiate on the price.
- You may be able to purchase a foreclosure property at a very reasonable price. While it is possible to buy at 30% to 40% below market rate, many foreclosures go for about 5% below market rate. However, banks that hold the mortgage may make other concessions, such as waiving some of the closing costs, offering a better rate on a mortgage or allowing a reduced down payment.
- Mortgage rates are very low. If you can lock in a 30-year mortgage now, you'll be guaranteed affordable payments for many years to come. If you have difficulty getting a mortgage from a large commercial bank, try a local bank. They are typically more inclined to invest in the local market.
- If you are a first-time home purchaser or haven't owned a primary residence in 3 years, you can take a credit of 10% of your home, up to a maximum of $8000 if you purchase between January 1, 2009 and December 1, 2009.
- Many people dream of a brand new house. The reality is, if you buy a house that needs some work, it is another way to get more house for your money. Just be careful that you know how extensive the work is and whether it's structural or cosmetic.
If you have always dreamed of owning a home, don't postpone your dream. There is no reason it can't become reality today!
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