Lately, it seems like all we hear about is how bad the economy has gotten, and how awful the housing market has become. This is a tough time to sell a home. Bad news travels fast, as they say, and it sells a lot of ads for the media. What you don't hear is that this is actually a great time to buy a new home. Prices have not been this low in years, and interest rates are still near record-lows. Here are a few important factors to consider:
- Your future is going to be expensive. Financial experts suggest that to retire, you'll need to build up enough in savings and investments to generate yearly income of 70% of your pre-retirement income. That's a tall order and a reason to start amassing some serious capital NOW while it is less expensive to assume.
- This is a buyers market.. But not forever. Right now the supply is still greater than the demand which means there are more homes for sale then the normal amount. This is good for the purchaser because there is more to choose form, the sellers are move eager to sell and you can get the best deal for your money. History shows that it will not always be that way and the market will swing back. The time to buy is now.
- House prices tend to rise over time, so a house is one of the best investments you can make. Home prices in the U.S. have risen three percent to six percent a year for the past 20 years. That trend is likely to continue. So if you buy a home now, you've put your capital in a safe investment where it is likely to grow in years to come.
- You'll be buying a piece of real property rather than putting money in a landlord's pocket. Right now you can purchase a home for close to the same amount you pay in rent. But there won't be any more rent increases when you own your home... Even better you get great tax breaks for homeownership; the biggest is reflected in the house payment you make each month since, for most homeowners the bulk of that check goes toward interest. And all that interest is deductible.
- More resources to help you purchase a home today. Rates are great for FHA with 3.5% Down and Conventional hovering with 20% Down. Buying prior to year's end secures a tax incentive for the entire year. mortgages interest and prepaid. Plus any Tax credits available is real money in a buyer's hand after filing taxes!!
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Loren Castillo is a recruiter and career coach with eXp Realty in Portland, Oregon.