When to Buy?
Is it really a good time to buy a new home? The answer is Yes!! You’ve heard it said that to be a successful investor, the key is to buy low and sell high. Well, that is true today as well in regards to purchasing your home, one of the largest single investment you may make.
With the real estate market experiencing “a correction”, not unlike what the stock market experiences from time to time, sellers are willing to negotiate their asking price or give allowances or offer upgrades to entice buyers. In addition to these bargains, interest rates have remained low. So, now truly is a good time to buy a home.
Don't Be Confused by the Economics
Today’s economic numbers are being skewed in such ways that unless you are a financial wizard, it is difficuclt to see the real picture. At this time, mortgage interest rates are running about three points below historical norms. Housing inventories are five months higher than in balanced markets. And if you combine that with unemployment that is a half percent lower than the recession of 2003, you have excellent homebuying conditions.
So, let’s assume that you are ready to become a homeowner. You have a good credit rating. You plan to live in your home five years or more. And you are just waiting for the right time to take that leap.
Well, the time to get serious is now! Low interest rates, negotiating sellers, larger than usual inventory, lower home prices – all these advantages can be wiped out if you procrastinate in making that decision. At any point, prices can stop going down and interest rates can begin to rise, and you will have missed the best opportunity to own your own home.
Take Advantage of the Rent-To-Own Benefits!
Here is another bit of information to consider. If you wait to buy your home, you may not be able to afford to get into the housing market because in some areas while home prices are beginning to level off, rents are rising. Additionally, financial institutions are restructuring their loan qualifications and it may be more difficult to qualify for a loan under their new criteria.
The sooner you make the decision to go from renting to investing in home ownership, the quicker you will begin to build up wealth for your family. Not only do you build up equity, but home ownership offers generous tax deductions on the interest you pay. Then after a few years, you will be able to leverage this home purchase into a larger house and realize your American Dream.
If you have questions about when to buy, give me a call at 615-319-9294, or use the form below to send an email. Get the information you need about your specific situation to make the most informed decision!
Denise Ruiz
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