From all the things I have been hearing and reading, the housing market is looking better and better everyday. My activity has been busier than ever and so have all the activity coming into our office.
First you can beat this time in history, first time home buyer tax credit. Remember there is a deadline. So if you are going to buy force yourself to get moving so you can reap up to $8000 in tax relief – in your pocket.
Everyone has to live somewhere. I have read that there are about 800,000 new household formed every year in the US alone. So this is a good indication that things will tighten up, because the demand is still out there.
There are many ways to look at investments. What if you put $10,000 in to stocks and earn ten percent. Then you have $1,000. If you take that same $10,000 and use it for a down payment on a home (of say $100,000) and the home increases by as little as 10% then you end up making $10,000. Not too shabby.
Another thing to note too when the housing market does turn around and it could be sooner than you think, you will have equity instantly. How can you beat it? Whether it turns around fast or slow, you will get that equity as things come turn around in the market.
If you get a fix rate mortgage, you monthly payment stays the same over the years as everything else will gradually increase. As mentioned in my last post, rates are historically low.
Best of all you own your home. You can make it your own, paint, add landscaping, and other upgrades, and you will see a return on your investment over time. Some of the homes in our area are selling for low enough prices that you can own for the same or less than monthly rent. So take advantage. It is so exciting!