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To Buy , To Buy , To Buy , "That is the question:

By
Real Estate Agent with wexzilla.com

This slight variation of Shakespeare’s famous line from Hamlet is the question I am hearing from as they buyers ponder and weigh-in on when it comes to that big decision to purchase real estate.

Here are 4 things to consider whether now is the right time for you to buy a home here in Greater Phoenix , Fountain Hills or Scottsdale….

1) A Home first, and investment last – a primary residence is just that, a residence, it is a place to live, to realize the American dream, to enjoy, to raise a family, it can create long-term wealth, however that is not the primary reason to enjoy homeownership

2) Low interest Fixed rates are a hedge against inflation – some of the lowest fixed rates are available; as a result you can buy the same house with a lesser payment, more importantly, with fixed monthly payments, you have a hedge against inflation, as your dollar buys more new home now, than it will later

3) Tax advantages – speak with a CPA or expert, however, there are some great tax advantages to primary homeownership, including no capital gains breaks on up to $500K in appreciation for married couples and deductions of interest against income

4) Long-term capital appreciation – many Americans have created significant wealth through home ownership and real estate across the country and here in Maricopa County, Arizona . Remember, Capital Appreciaion should be the last reason to buy; as homes do cost about 8%-10% year to own when you figure in interest, taxes, insurance and upkeep.

Though, if you have a fixed rate mortgage, pay down principal and are patient, history tells us, you will enjoy the many wealth creation benefits

Make sure you make prudent investment decisions when you buy Real Estate and buy a home for the right reasons. Most importantly, make sure you can afford it, there is no sense working hard 7 days a week, even if we do have beautiful weather here in Scottsdale and the Greater Phoenix Valley, just to struggle to pay a mortgage that you cannot enjoy.

 

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Copyright © 2008 By James Wexler, All Rights Reserved. *To Buy or Not to Buy (real estate) … that is the question*

Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs.

Comments (8)

Tamara Perlman
Referral Network Inc. - Truckee, CA

Hi James--

I like the comment about a house being a home first, investment last.  So many people forgot that the last few years.  Good advice for people looking to buy a property.

Feb 16, 2009 07:16 AM
Jose Santos
Casa Latino A.T. - Concord, CA

Great Advice.. I believe it also stems out to all homebuyers in this market. Like you said It's better to be able to enjoy what you work for. 

Feb 16, 2009 09:01 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

James, I do believe too it is a good time to buy if you can and agree with you to look at it as a HOME.  Great advice for those still wondering.

Feb 16, 2009 01:54 PM
Kathy Torline
ERA Herman Group Real Estate - Colorado Springs, CO
Colorado Springs Real Estate Blog 719-287-1049

Great article, you made some wonderful comments about things to consider.

Feb 16, 2009 11:00 PM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I'm afraid that too many people saw too many other people get rich in the real estate bubble and now everyone thinks that real estate is a commodity to be bought and sold every two years. Television programs haven't helped: "Get rich in real estate."

Feb 17, 2009 05:25 AM
Kathy Hyatt ~Plantation, Davie, Sunrise REALTOR
Remax Services - Plantation, FL
Broward Realtor Selling Plantation,Davie & Sunrise

I absolutely agree, this is the Time to Buy.  With interests rate low and all the Buyer incentives available, why rent when you can own a Home! Thanks for the Post!

Feb 17, 2009 02:06 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

I can't imagine a time in a very long while that has offered as much opportunity for home buyers, with many properties to chose from, and with low interest rates available as well!

Feb 18, 2009 08:03 AM
Anonymous
Troy Reynolds

So, if someone was looking to upgrade from their existing home or buy for the first time (not in an investment sense), now is the time? What about lending? How hard would it be for first time homeowners with great credit to qualify?

Is it still okay to live just outside of town? Seems like there has to be a sweet spot in places 30ish minutes away from a downtown.

Feb 22, 2009 07:15 AM
#8