To Rent or Buy: That is the Question
Now that the home buyer tax credit has come to an end, many would-be homeowners who missed the deadline may be asking themselves whether they should continue renting. While the tax credit was a strong incentive, the major benefits of homeownership are personal, not financial.
Owning offers a permanent home in which to build a life and family,
opportunities to become part of a community, and flexibility in lifestyle. At the same time, while continuing to rent may or may not cost more in the short term, owning a home can save money over time – rents go up; fix
ed-rate mortgages are fixed for the life of the loan.
Interest rates are still at an all time low, but how long they stay like this is anybody's guess. Inventory is still high and even though the tax incentive has ended it is still a great time to buy a home fo
r personal or investment purposes.
Even though it is tougher to get a loan these days, it is still possible. There are just a few more hoops to jump throuigh. But I do have lenders getting packages to closing within 30 days or less.
With the amount of homes on the market and corraborating data that show many areas of the housing market have started to stabilize, now would be a good time to jump on the band wagon and buy a new home. By purchasing a home at the bottom of the bubble you can start building equity more quickly when housing prices start to rise.