1. Interest rates are at historic lows. Since July of 1973 to 1981, fixed interest
Rates have been between 8.5% and 18.5%. In 2001 they dropped to around
7% and even lower to 5.25%. All lenders agree that interest rates will only
Go up from here. These lower interest rates allow you to have more buying
Power which enables you to buy more for less.
2. This is a Buyer’s Market which means that the supply is greater than the
Demand. The US Dept. of Housing and Urban Development say the supply
Is at 3 million…up 23%, which means you have more to choose from and
A great chance to find the right home in the right area with all the features
You want. Because sellers are more eager to sell you’ll not only get a good
Deal, but a chance to negotiate the closing costs, home warranty, and
Other concessions from the seller. Take advantage of this buyers market.
3. The stability and emotional security of owning your own home gives you
The freedom to paint the walls any color you desire, turn up the volume on
Your CD player, move walls, redecorate, upgrade, plant a garden, have pets
And not have to worry about the landlord raising the rent or ignoring your
Pleas for repairs. Best of all you are not paying for his property you are
Paying for your own with a ton of fringe benefits listed below. Rents are
Rising in some areas as much as 25% making it better to buy than rent.
4. Property Tax Deductions on your income tax means that buying a home is
An incredible tax shelter that can save you thousands when your file your
Income tax. The federal government is subsidizing your home purchase,
Because you can deduct 100% of the property tax charged each year for
Your primary residence and also for a vacation home.
- Mortgage Interest Deduction is another great tax shelter and because it is
The largest portion of your mortgage payment it’s a great tax deduction.
- Appreciation according to the Federal Housing Enterprise Oversight states
That the average home increases in price in most areas by about 5% a year
For the past 20 years making it a great hedge against inflation.
- Mortgage Reduction over time builds Equity which can help you in 2 ways:
It can get a home equity loan for many reasons and you can deduct the
Interest on your income tax return. It can also help you when you go to
Sell your home by giving you cash to put toward the down payment or
Other needs when you buy your next home.
- Capital Gain Exclusion means that as long as you have lived in your home
For 2 of the past 5 years, you can exclude up to $250,000 per person, or
$500,000 per married couple of profit when you sell your home. You do not
Have to buy a replacement home or move-up to a higher price. You could
Sell every 2 years with no capital gains taxes as long as the property is
Under the limit, and pocket the profit tax free.
- There is only a two-year supply of building lots available in most markets,
Causing the market to be very competitive. With the current interference
Of the government and the bad real estate publicity and news. Normally in
The past there has been a 10 year supply of lots which made for a long
Recovery. Now, with only 2 years supply it will intensify the recovery time
And put significant pressure on the market to increase the number of lots
Available. You should gain the most appreciation on your property in the
Next few years.
- Interest Rates are changing sometimes 2 to 3 times a day…gradually
Inching upward. In addition, many loan programs are being totally
Eliminated making it harder to get loans because there are fewer loans
Out there, lenders are getting more picky and demanding, they are
Requiring higher and higher FICO scores and higher down payments,
Making it even harder to get loans…so do it while you can. Even if you
Hear that the Feds are reducing the interest again…it is not lowering the
Interest you will pay on your loan. Many more lenders will be going out of
Business as the number of foreclosures continues to rise.
So why wait? Now is the best time to buy for all of the above reasons!