Okay, so you want to buy a home. But all we keep hearing is the media saying that the housing bubble is bursting, the economy is going into a recession, and the future is uncertain. You need to step back and take a look at the facts, not the media hype.
1) Home prices have come down.
2) Interest rates are low.
3) FHA insured loans allow you to buy a home with as little as 3% down.
Okay, so lets just look at these facts. If you want to buy a home, now is the time. If you wait for the market to improve, prices will rise and intrest rates may or may not. If prices rise and interest rates do as well, you will be able to afford less house. Many people will not be able to aford a home that they can now.
Some of the "experts" say that prices may continue to fall. Could they be right? Of course they could. But lets look at why your buying a house. Is it for investment or is it going to be your home? If it is going to be your home, is it going to be your home for the short term or the long term? If you are looking for a home to stay in for 5 years or more, that is long term.
This essay is for those who want to purchase a home for the long term. Now is the time to act. You can not time the market. If you are looking for the bottom of the market by the time you find it, it will be gone. Real estate has historically gone up over time. If you are intent on buying and holding, it is extremely likely that you will profit.
So the point is that you must look at the purchase of a home for what it is. It is buying a place to call home that comes with tax deductions, a place youwill live in that will also build equity and turn out to be a pretty good invesment. How is renting working out for you?
I truely believe that now is an awesome time to purchase a new home. If you have any questions or would like to contact me you can real me at 401-739-2020.
Tim McDonald
Gordon, Tobin, & Read
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