The real estate market has all but bottomed out. Interest rates can’t go any lower. As the saying goes: ‘buy low, sell high’! For investors and buyers, now is a golden time to buy.
What if you need to sell before you can buy?
You can sell your home in today’s market, but only if you do three things correctly: price right, stage right and be in the right location. If you don’t properly price your home, it won’t sell. It’s that simple. There is too much inventory on the market. If you don’t stage your home properly, you may be delaying the sale of your property (some agents won’t even show it). And if you aren’t located in a fantastic area, you need to price even more aggressively.
Whether you are an investor looking to diversify your portfolio, or a buyer that wants to get in at the bottom of the market, consider these recent facts:
Interest rate projection by NAR:
In short, it’s never been cheaper to finance buying a home. And compare the prices for gold, which are at an all time high, to the prices of homes, which are at an all time low. You don’t have to be a rocket scientist to figure out where to put your money. Need more proof that we are at the bottom of the market? America’s leading economist, Mark Zandi, gave his thoughts at a recent NAR convention:
“The housing crash is over—nearly. We are now near the bottom,” Zandi said. “There will be no real price growth in 2010 or 2011. Whether home prices weaken is unclear, but it will take two more years to work off excess housing inventory at the current sales pace. Of course, if demand picks up, it would take less time for prices to rise.”
To get some perspective from the inside, we talked to Andy Skillen with Atlanta Intown Real Estate Services, on what he is seeing:
“Every buyer has different goals, some of which are competing”, said Skillen. We have a buyer who wants a great deal on a high rise condo, with the best resale value, and that can be easily rented out. The challenge is that it’s easier to get financing on a unit with rental restrictions, so the resale value is higher, but you can’t just turn around and rent it. The good news is that he can get a 2 bedroom, 2 bath off Peachtree with amazing Big City views for what used to be the price of a one bedroom. For those lucky enough to be buying, there are amazing deals, but it’s still a lot of work to find the best deal.”
An option that some home owners, who aren’t desperate to sell, are considering is to rent out the place they own, and buy another property at 30-40% off the market high. That helps owners offset the losses on the first home, and puts you in a position to make money off today’s low real estate prices.
Labels: first time home buyer tax credit, First Time Home Buyers, Forclosures, Foreclosed, foreclosed homes, foreclosed homes for sale, foreclosed land, foreclosed properties, foreclosure, Foreclosures, foreclosures for sale, Home Buyers, home buying, homes sellers, Real Estate, reasons to buy a home, sell my house, sell your home in a slumping market
# posted by
Brian Vanderhoff @ 8:19 PM
We are working with more First Time Home Buyers than ever before! Call us - we can help!!! As a potential first time home buyer, you may feel a little overwhelmed with the entire process of buying your first home. Our goal is to empower you with the information and resources necessary to give you the confidence and financial help needed to make the dream of buying your first home become a reality. The more you know about the home buying process, the more likely you will be able to purchase the home of your dreams.
If you do not yet own a house of your own and are currently renting, here are 6 very, very compelling reasons why you should buy your first home.
1. Enjoyment. The primary reason you should purchase a home is for the enjoyment it will bring you and your family. You should buy a home that you will love living in! Undoubtedly, the first house you buy will not be the home you live in the rest of your life. As you mature your income will likely improve and your housing needs and desires will expand. You will likely sell your first home and trade up to a larger, nicer one. However, your primary focus when choosing your first home is to buy a house that will bring you enjoyment each and every day that you live there. If you do that, the improvements in your quality of life will be literally priceless.
2. It is an investment. My parents bought their first home in 1965 for $12,000. It was a modest home, just under 1,000 square feet, in a relatively nice neighborhood of similar homes on the outskirts of town. Today, that same home would sell for $175,000. Granted, much of that increase in value is due to inflation, but with government spending and deficits at record levels, inflation will continue and likely accelerate in coming years. By buying a home now, you will own an asset that will go up in value as inflation causes the general price level of everything to rise.
3. Tax Savings. The tax savings from mortgage interest can be huge. If you are currently paying $1,000 per month to rent your apartment, that same amount applied to a mortgage loan payment would result in a nearly $12,000 tax deduction (in the first few years of a conventional mortgage, nearly all of the payment goes towards interest, and very, very little goes toward paying off the loan. The interest is tax deductible). If you are in the 28% tax bracket, this one deduction would be an annual savings of over $3,300 on your income taxes.
4. Financial Benefits. Whatever you are currently paying for rent, it is money that is simply spent, never to return to you again. Contrast that to buying a home using a mortgage loan; instead of spending money on monthly rent, you are paying off a loan used to purchase the property. With each monthly payment, the loan balance goes down, and the equity in your property goes up. The monthly payment goes toward buying an asset that will go up in value. Besides the shelter that is provided, you get to keep an appreciating asset.
5. Privacy. As a renter, you are not entitled to the same level of privacy that a home owner is entitled to. It is common for landlords to retain the right to inspect the interior of their property upon giving the tenant proper notice 24 hours prior to the inspection. When you own your home, nobody is entitled to enter without your permission. It is your personal space on the planet that you have final say over. Your home is your private sanctuary for you and your family.
6. Freedom. Do you want to build a tree house in the backyard for your children? Would you like a volleyball net to use for weekend games with friends? Want to have a large 4th of July celebration for 100 of your closest friends? Being a homeowner provides the freedom to do these things and virtually anything else that is legal to do. You do not have a landlord telling you what you cannot do. The freedom is priceless.
Labels: Alpharetta, Canton, Cumming, First Time Home Buyers, Georgia, Johns Creek, milton, reasons to buy a home, Roswell, sandy springs, suwanee, Woodstock
# posted by
Brian Vanderhoff @ 8:11 AM
