5 Great Reasons to Buy a Home Now!
Interested in purchasing a home?
Reasons to consider buying now include:
1) $10,000 California Tax Credit**
Eligible first time homebuyers and purchasers of new homes can receive up to $10,000 for homes purchased between May 1 and December 31, 2010 and between January 1 and August 1, 2011. A finite amount of money is designated for these programs – don’t delay.
2) Interest Rates at Historic Lows – May Increase Soon
The Federal Reserve announced they will be exiting their plan to purchase mortgage-backed securities. That plan has lowered interest rates on a 30-year fixed rate loan by up to 2 full percentage points since its inception in October 2008. Many experts believe interest rates will increase quickly once the Federal Reserve backs away. A significant change in interest rates could dramatically increase your monthly costs and reduce your purchasing power. Take advantage of the low rates now.
3) Huge selection of Distressed Properties
(Short Sales, REOs, Foreclosures)
There’s a tremendous selection of distressed properties currently available. Short sales and REOs have created many opportunities for savvy investors and allowed home buyers to purchase their dream home at bargain prices. Inventory has declined so the opportunity is now.
4) Real Estate Has Always Been a Good Long Term Investment Though prices in several markets may continue to feel downward pressure in 2010, the long-term real estate market will eventually rebound to historic levels of returns. Even in the past decade of significant reductions in real estate values, real estate was a far better investment than the stock market as shown below:
Return on Investment Jan 1, 2000- Dec 31, 2009
Dow Jones -5.6%
S & P 500 -20.9%
REAL ESTATE +56.2%
5) Your House is a Home First and an Investment Second
Our culture today is moving away from extrinsic values (power, money and prestige) and moving back toward more intrinsic values (wanting meaning in our lives). The home has always been a place where friends and family gather to share life experiences whether at a party or over a simple dinner. Focus on the opportunity to buy a home coupled with the happiness and fulfilling experiences a home brings to a family.
**Always consult with a tax professional.