There are plenty of folks who are choosing to buy their first homes right now in Dakota County, especially in Apple Valley and the five cities on its borders. Interest rates and prices have converged to the optimal level, and the indications are that this may be as good as it gets.
There are a lot of real estate professionals who offer reasons to buy a home right now, and most of the given reasons are valid for somebody. They are not all valid for everyone. For example:
Interest and Property Taxes are Deductible. This is true, but the fact that they are deductible does not always mean that they should be deducted. The standard deduction for single filers in 2012 will be $5,950, and the standard deduction for married filers will be $11,900. You have to have enough deductions to exceed the standard deduction or your deductions will not help your tax bill. If you have little else but mortgage interest and property taxes to deduct, many entry level home purchases will not give you a tax advantage.
Owning is Cheaper Than Renting. This could be true, but it is necessary to include all the new expenses that go along with owning your own home. In addition to the monthly payment which may actually be lower than your current rent, taxes, insurance, general maintenance, periodic updates, future assessments, and desired improvements need to be considered. Generally the new home is larger than the rental, so utilities could also cost a bit more. Owning will probably cost more than renting, but driving your own car usually costs more than taking the bus too, which brings us to the one reason to buy your first home.
It May Cost More, But It's Worth It. The best and most universally valid reason to buy your first home is because it will probably make your life better. That is, it will make your life better if you do your homework, don't overspend, and choose carefully. talk to a financing professional, and expect that you will be qualified for more than you feel that you can comfortably allocate to your monthly payment. The comfortable amount is the important one, and it's best to not exceed that level. Keep in mind that unexpected expenses, both home-related and otherwise always occur. Have a cushion saved that will not be used for buying and moving expenses. With the proper preparation, your lifestyle upgrade will be worth the effort and the possible additional expense over the cost of living in the world of temporary housing.
If you're ready to declare your independence from Mr. Landlord, call me to arrange a convenient time for a home buying orientation and strategy session. You'll learn about buyer advocacy, the risks and rewards of buying foreclosures and short sales, what to look for when shopping for a new home, and a whole lot more. Call now, you have nothing to lose but about an hour of your time.
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