The Fed launched Operation Twist this week and we are already seeing rates drop to levels many of us in the business have not seen in our lifetimes. But does that mean it is a good time for YOU to buy?
Everybody's situation is different as every home is unique, even condos and townhomes in a development, their individual location means that the view and the perspective is different for each home even if they are the same model. Likewise every person has a different situation, student loans, car loans, possibility of transfer, desire to start a family, getting engaged and then married. All of this needs to be considered.
Ignore the news, media today only focuses on the negative, America has a robust economy with over 90% of its population employed, in all the classes I took that is a sizeable majority. Yes, many are unemployed, and whilst not wanting to diminish the pain they are suffering, if we continually focus on the negative and the inability to work together we will never get them back to work. Most American corporations and businesses are in good health and have cash in the bank, they just need the confidence to move forward.
In the same way, a buyer needs confidence to move forward today in this market, with interest rates this low, and a steady job, many mortgages, if fixed are doable for those who are employed. Buying your own home has some benefits and negatives so lets look at these.
1) You will steadily and slowly build equity - a built in savings plan.
2) You are not controlled by a landlords rules and regulations you can make your own decisions as to pets, decorations, colors etc.
3) Research shows Homeowners families do better in school
4) Communities with homeowners have more involved citizenry in local affairs.
5) At the moment there are tax advantages to owning a home
1) You need to consider and budget for repairs, and maintenance.
2) Possibility of the value of your home going down - let's look at this for a moment, yes there is a risk, but what would you pay in rent, that is dead, lost money, so offset this when considering the possible risk of the home value going down to the freedoms it gives you.
3) Inability to move at will, time delay for selling and tie up of capital
4) Need for capital for down payment and closing costs
As I said there are many different situations, but don't presume you cannot buy, there are many programs today that allow you to have a low down payment and these give you the ability to consider purchasing and having the freedom to lead your own life on your terms in your own home. If you need help deciding if now is the time to buy along the Main Line to the West of Philadelphia give us a call and we can help you through the decision making process and help you find a home whether it is a rental or a purchase.