There are amazing deals
- There is no doubt about it, this is a buyers market. There a great deals to be had especially if you are willing to negotiate a mean price. According to Standard & Poor's Case-Shiller Index, home prices have dropped nearly 30% from their highest. The question arises of homes dropping to an even lower price, is there a better deal to be made? They could but it doesn't end up making a difference in the end. Jeremy Grantham at GMO predicted the drop in the market with complete accuracy two years ago, believes to reach fair value there will be another 17% drop in household incomes. Since this prediction have been made, we are down 18%.
Cheap Mortgages
- Interest rates at this time are at a record low with homeowners receiving a 30-year loan for about 4.3%. Two years ago, 6.3% is where the rates fell. With such a large decrease mortgage payments are cut by a fifth. Chances are rates this low will not be seen again in our lifetime.
Save on your taxes
- Mortgage interest can be deducted from income taxes as well as real estate taxes. If there are any capital gains when the home is sold, there are breaks to be gained. An itemized list of deductions would be necessary making it a little easier to just take the standard deduction. The more you earn and the bigger your mortgage payment the more valuable tax breaks are. A lot of people find owning ends up costing them less than renting with all of the tax breaks offered.
You own it
- You buy, you own! When you make the step to purchase a home you make the step to freedom. You can paint the walls whatever colors you want, tear walls down, build a room on etc. When you rent, you are restricted. It's often a great feeling to be able to do what you want with your home.
You could profit
- A home purchase shouldn't be viewed as a way to get rich but with the economy at such an incredible low which means it is ready to bloom at any minute meaning prices will start making their way back up. Home equity is a great way to build your financial portfolio.
It's the way to save
- Most feel by renting opposed to buying they are saving money when in actuality its the complete opposite. Think of it this way, you pay 1,000 a month to rent your apartment instead of $1,500 a month to own. Is the $500 a month you aren't putting into a mortgage being saved? Most of the time, the answer is no. Buying builds equity.
Choices
- There is so much to choose from around the country right now. According to The national Association of Realtors there are 4 million homes available. The best part, more homes are coming on the market daily. The banks are now placing their unsold properties on the market slowly allowing great choices for buyers.
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