Why Buy a Home in This Down Market?

Buying a home is still the right option for most people. 

In fact, this may be the best time in years for renters (or military personnel living in government housing) to make that move to home ownership because home prices are more affordable than they've been in years.  Not only that, interest rates are lower than they've been in decades.  You don't want to let this opportunity get away, especially if you plan to live in the same area for a few years.

There's so much media focus on falling home values that all the other benefits of home ownership are often overlooked.  For example:

LANDLORD TROUBLES -

• Rent is going up again
  
• Landlord won't make repairs promptly - or at all
• No pets are allowed and your children really want a puppy
  
• Landlord decided to sell (or rent to his brother)
  
• Can't decorate your new baby's nursery 
• Carpet is disgusting and landlord won't clean or replace it
  (or even allow you to do it)
  
• Property is going to foreclosure because landlord didn't pay the bank
• Landlord doesn't return your calls
• Landlord harasses you by frequent inspection visits

THE "REAL" COST OF OWNING -

• Rental payments simply give you a license to occupy the property without any financial benefits
• Interest payments on your mortgage are deductible on your Federal and State income tax
• Property tax payments on your home are deductible on your Federal and State income tax
• Principal payments on your mortgage reduce your loan amount and build equity
• Potential for equity growth through appreciation
• Net mortgage payment (PITI minus tax benefits) may be lower than current rent... or at least comparable
  
  

If you'd like to play with the numbers yourself and estimate your "real cost of owning," click through to find out How to Compare Rent to Mortgage Payments.

When you look at the many reasons people buy instead of renting (or living in Government housing), I think you'll agree it's still a good decision for most people to buy a home in today's market.  That's true in most parts of the country, and certainly in the Fort Meade and Greater Crofton area where our economy is stabilized by having "government" as our local industry.

Learn about the $8,000 Tax Credit for first-time buyers

Margaret Woda is a licensed Associate Broker in the Washington, D.C. - Baltimore - Annapolis area.  She specializes in Anne Arundel, Howard and Prince George's Counties, Maryland, including Fort Meade, Andrews AFB, and the U.S. Naval Academy.  If you enjoyed reading this post, check out Focus On Crofton and Your Online Relocation Package for Anne Arundel County.