TAX CREDIT IS GONE...
WHAT NOW? / WHY BUY?
More Reasons than 1
So now that the First Time Home Buyer Tax Credit is gone, people ask me "Dave, why should I buy a home?" There are so many reasons to buy a home and if you missed the $8000 tax credit and think that buying a home is not as important now...keep reading and see why it is still the best time to buy now!
Out of all the reasons to buy a home in today's market, one reason or another will mean more to you than someone else, so I will simply put my top five reasons to buy a home, the first two are why to buy a home Today!
1. Low Interest Rates - I used to be a mortgage broker and never have I seen rates this low. Right now you can get an FHA or Conventional Mortgage for under 5% and VA is offering 4.5% for 30 year fixed! There are also rates under 4% for 5 year Fixed Mortgages. If I could buy more homes I would.
2. Home Values - Right now homes are the lowest they are going to be and combined with low interest rates it's only a matter of time that they will start to increase as people start taking advantage of these rates. We have already seen an increase in home values this year and there are less people loosing their homes to foreclosures. That means it is only going to get better. Slowly, but better.
3. Security - I remember as a child growing up in several homes because my parents never owned a home. We always rented and that caused a lot of stress on my Dad because we literally had to move every year. I was never in the same home for over a year because either the seller wanted to increase rents, move back in, sell the home, or he had not made payments and the home was sold at auction. Even though I had a great childhood, I never had those height lines on my bedroom door for every year, or those same friends in the same school district. Today I completely appreciate the fact that I can live in my home without the fear of increasing rent rates or being told that I can't renew my rental agreement. My son, I hope, will always have the same friends and live in the same house.
4. Tax Deductions - I was so amazed at how much interest I was writing off with a purchase money mortgage. Today's Rates are the best I've seen in Years! If you purchased a home today for $250,000 even at 5% you would be able after one year to deduct over $12,000! The monthly payment (not including taxes and insurance) would be less than $1400 a month. Have you seen what you can get now for $250K! Call me today and I can let you know what you can expect pending how much you can afford to purchase. If you’re renting, you know that it is just going in the owners pocket and he is getting the benefits.
5. Investment - When I purchased my first home in 2004 I bought it for $166,000 and that included closing costs. It of course has gone up and down with the housing bubble, but even still, today it is valued at $180K...so even with the ups and the downs, Real Estate will always go up. My brother bought a home in 1999 for $125K that is now worth roughly $200K. If he sold it today that would pay for two college educations! Think about that!
When you're ready to buy, or sell, please make sure you contact Dave and Jeremy for up to date information on the market as well as expert marketing and negotiating. We understand the entire process and can refer you to great mortgage brokers and other industry professionals!