1. Interest Rates are still at Historic Lows
30 Year fixed rate loans are currently 5.00%-5.25% versus the 7.00%-7.25% of 2008. Keep in mind that rates in the 1980's hit as high as 17.00% so even today's rates are EXCELLENT!
2. Inventory is High
There are more homes on the market to choose from than in years past, so you have a greater ability to pick and choose where you want to live and what features you want the home to have.
3. Mortgage Payment could be Less than Rent
Rent is rising because of simple supply and demand. More people are being forced to rent because of the economy (demand) so the landlords have the ability to raise the rent on their limited inventory (supply).
4. Prices are Down
This is the big one. Everyone wants to wait until prices hit bottom but no one can truly tell you when that will be. If Interest Rates rise while you are waiting for the market to hit bottom, it could end up costing you more because your mortgage payment will be higher. Paying a few thousand more for a home today at a lower Interest Rate will actually save you money in the long run.
5. Desire to Own a Home
According to the National Association of Realtors Profile of Home Buyers and Sellers 2010 nearly 33% of ALL people who purchased homes in 2010 did it simply because they wanted to own a home. The number of First Time Home Buyers who chose to buy a home in 2010 because of a desire to own a home was 53%.
6. Neighbors who Care about the Neighborhood
Everyone's property values are directly effected by what is going on with other homes within their neighborhood. The term "Nosy Neighbor" might come to mind here but remember that nosy neighbor has a vested interest in what goes on in their Neighborhood. When you are considering buying a property and you see a neighbor outside, ask them questions about the home and neighborhood. Believe me that neighbor wants that vacant home occupied as quickly as possible before her property value begins to suffer.
7. Build Equity
The difference between paying your rent and making a mortgage payment is simple, you will never see your rent money again. Paying a mortgage gives you the chance to build up a savings for your next home by accruing Equity with every payment. The Equity you build now can be used for a down payment on your next home to help keep your payments close to what you already pay, even though the next home is probably more expensive.
8. Buyers have Power
Sellers no longer control the market because of the high number of Foreclosures, Short Sales, and total volume of Inventory that buyers have to choose from. Sellers are adjusting to the changing market by helping out buyers with closing costs, conceding to repairs from inspections, and even adjusting moving dates just to get the deal done.
9. You SAVE on Taxes
Owning a home allows you to deduct your property taxes and any interest paid on your home loan when you file your tax returns. The government also allows you to deduct any interest paid on a home improvement loan, which you might need if you buy a home that needs a lot of repairs.
10. It will be YOURS
YOU OWN THE HOME!!! No more pet deposits, no more sharing walls with neighbors, and no more asking for permission to paint your walls a color that matches your furniture! Home ownership gives you the freedom to do what you want to with your home and with your life without having to answer to a landlord.
I hope these tips are helpful but if you have any other questions that I might not have covered, let me know and I'll help you find the answers.
Have a great day,
Gregory Weis
Coldwell Banker Regan Realtors
913-579-4106 Cell
913-631-2900 Office
913-631-2904 Fax
I am NEVER too busy for Referrals!
No comments:
Post a Comment