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Should I wait or should I buy??

Should I wait or should I buy?......this seems to be the biggest and most frequent question in the market today.

Why a person or couple is looking to buy is the question we need to have answered BEFORE we can even think of answering the should I wait or should I buy question.

What we need to determine is if the house is to be used as an investment or a lifestyle asset.

Are the buyers looking for a home to set their roots, perhaps start a family, become an active member in a community?

Or is this for a short term period, under 3 years, than to move on?

As a lifestyle asset it is a perfect time to buy as interest rates are at historic lows and home prices are down by almost 18% from what they were 2 years ago. You will be in your new home for many years to come, and as with all economic cycles (this isn't the first recession) it too will pass and you will have had the enjoyment of your own home.

Just to give you an idea of how much a monthly payment would be for the purchase of a home at the average home sale price amount:

FHA mortgage for $241,500 on a $250,000 home. The interest rate at 5.75% for a 30-year fixed rate loan, yielding a monthly payment of only about $1,765 - just about $200 more than the rent you would be paying on a smaller home. The tax savings will more than offset that, as well as his property taxes and insurance.

The mortgage interest deduction on your taxes would be $13,800 and the property tax deduction would be $2,500

As an investment to hold for a very short period this MAY not be the time for you, unless you purchase a home (more than likely a foreclosed property) that is priced below market to unload and needs some cosmetic attention that you have the capability of handling without the necessity of expensive general contractors. If it is purchased very smartly with much research you can do okay.

Bobbie Files
Your Bristol and Plymouth County Realtor
508-238-5000 x.296 Office
bobbiefiles@kw.com Email

Visit my website at www.BerkleyMass.com

Search for Berkley Ma Homes at: http://BerkleyHomes.BerkleyMass.com

Search for Taunton Ma Homes at: http://TauntonHomes.BerkleyMass.com

Posted by Bobbie Files Realtor® Berkley, Greater Taunton Homes for Sale on 01/24/2009 06:56 AM

Comments (8)

Time to Buy in the ActiveRain Channel

berkley ma, berkley homes, bristol county real estate, taunton homes, bobbie files, keller williams realty

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8 Comments on Should I wait or should I buy??

JAN

Bobbie, very nicely said. For all the buyers who are waiting for the market to bottom out may be missing a great opportunity to purchase now.

Bobbie, I think we forget to ask that question ( Why do you need to purchase a home?) I think it is a great first question to ask, it kind of breaks the ice with nervous first time buyers. The only problem we are having in Michigan currently is appraisals. Not there fault either because they represent true market value. Sad thing is people didn't save enough to put down.

The fear is always....is this REALLY the bottom ? The crystal balls keep fogging up in that prediction.

Good morning Bobbie,

Points well made. With interest rates so favorable, prices as low as they are and first time home buyer incentives being what they are at this time, one can't argue now would be a great time to buy that first home. The reason for the purchase, other then best financial opportunities, could be varied and set in their proper place before the final decision is made. All things being considered, there is no reason to wait any longer.

It is always a great time to buy. There are deals in any market at any give time, you just have to look. I sold as many, actually more homes in 07 as 06. I listed only homes that had equity ( it was crazy to list homes with no equity in hopes of selling) I turned down three times as many as in normal times but I knew what would sell and didn't waste my time or the seller.

The point is, at least here as many homes are selling as before 05. 05 was a great year thank God for it but don't use it as a benchmark for the rest of our careers.

Reasonably speaking I do agree partially with you Bobby and the previous commentors! For all the reasons you and they have mentioned. However! This next comment will likely leave a sour taste in your throats.

What has the news been telling us all, for the past month, at least. The projected forecast for Foreclosures is likely 1.5 - 2 Million more homes over the next two years! Are you watcheing the unemployment statistice that are coming out? Does that sound ominous? It should, it tells us as Realtors there is another or continued downward shift coming. Likely the re-adjustment of the ARM's written in 2005 thru 2007. So be prepared! Be aware of it. Really dig into the minds of your clients for exactly why and how long they are planning to purchase a home.

Your clients had better be prepared to live in their new home for 4-5 years minimum, or longer period of time, if they hope to get anything out of the transaction. I highly doubt that when the market turns around that pricing will rebound up, quickly?

I'm an optimist!, but I'm not going to ignore the obvious!, The reality is I will give my clients all the information I can find, to help them make their decision, and to benefit them.

Hopefully we will all see success in our personal business, provided we are equipped to deal with the changing markets. The current scenario kind of reminds me of the book, about two little people and two mice in a maze, what was that title? "Who Moved My Cheese"?

- interest rates sure makes it more appealing for home buyers & owners considering refinancing and should motivate them. In the article Time to Get Off the Fence and Into a Home, the same message comes in an article from NYTimes.com offered by Your Money. Another source with this message was from Smart Money, Time to refinance -- or buy a home? Good information to pass on to our buyers.

Best wishes for 2009!

Trey Affolter

http://www.treysellshouses.com

APR

Foreclosed REO properties for sale in Miami. Wholesale Real Estate Blog featuring Properties in Miami that can be bought for Pennies on the Dollar. http://www.buyingahomeinmiami.com

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