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Why Buy Now?

Signs are all are pointing to a recovery in the housing market, but buyers shouldn’t have to worry about massive bidding wars breaking out anytime soon. The combination of relatively low mortgage rates, still sticky real estate prices, and a large number of homes not yet on the market could make today the best time to buy a home. Sure, depending on where you live maybe there’s more pain to come in the housing market, but here are some reasons why it’s good to buy a home today.

1. You can get a good deal. This is a buyer’s market. Most of the other buyers have now vanished, and prices have come down a long way– about 30% from their peak. Will prices fall further? They could but it doesn’t really matter if you plan to be in your home a long time because there’s time for values to bounce back. You can get in low and now have your chance at appreciation again.

2. Mortgages are cheap. With good credit, you can get a 30-year loan for around 4.3%. These are the lowest rates in history. As recently as two years ago they were about 6.3%. That drop in rate slashes your monthly repayment by a fifth. If inflation picks up, you won’t see these mortgage rates again in your lifetime. It’s worth it to repair credit issues and get into the home buying game.

3. You’ll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you’ll get a tax break on capital gains–if any–when you sell. Sure, you’ll need to do your math. You’ll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

4. It’ll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so tolerant; for renters, these types of changes are often impossible. You’ll feel better about your own place if you own it than if you rent. We make available financing that allows you to buy and customize your home all in one loan.

5. It’s money at risk. No, your home isn’t the stock market and you shouldn’t view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

6. It’s forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won’t. Most, if we’re being honest. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn’t a cost. You’re just paying yourself by building equity. As a forced monthly saving, it’s a good discipline.

7. There is a lot to choose from. There is an abundance of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That’s below last year’s peak, but well above typical levels, and enough for about a year’s worth of sales. More keep coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

8. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing excess will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction.
Get Home Now! is a great choice for individuals and families who want to own a home but

May not know all the steps to buy a home.
May think homeownership is impossible.
Have some credit problems.
Have not established a traditional credit record.
Do not have the cash required for a down payment and closing costs.

Each of the steps within this program will help you to have a clear understanding of your opportunity and responsibility in the home buying process. This program will give you the wisdom that you will need to fully embrace the process of purchasing your own home, safely.