THERE’S NEVER BEEN A BETTER TIME TO BUY!
Updated: June 3, 2018
In the past we have come to believe
that if interest rates increased, home values were more likely to plateau or
decline. The fact that both interest rates and home values are presently increasing
at the same time is a new phenomena. In light of this fact, it may sound like
“just so much real estate hype” to say that there are still some
compelling reasons to strongly suggest that this is an excellent time to buy
a home. If you take five minutes and read this notice and I think you will
agree. Here’s why:
LOW INTEREST RATES: Interest rates have continued to adjust
slightly (both up and down) but are currently trending upward. We have
experienced low home interest rates for the last half decade or more and, in
spite of the upward trajectory, rates remain historically low. While no one
knows with any accuracy what rates will do in the future it seems unlikely that
they will decline in the near term. Thus, one might be cautioned that the longer
one waits to take advantage of the still historically low rates, the greater
risk that they will increase, especially as inflation threatens going
REDUCTION IN INVENTORY: As interest rates have adjusted, both up
and down, home inventory has generally declined. This lack of inventory is
credited with keeping home values elevated as competition among would-be buyers
has become more frequent. Never the less, buyers can still purchase at a
reasonable price and profit from the low interest rates and future
appreciation. Real estate is almost always a good long term investment. But, be
careful. You want to buy at market value but by trying to bargain too much, one
could lose out in the long run in this hyper competitive market.
TAKE ADVANTAGE OF POTENTIAL FUTURE
APPRECIATION: The economy typically
moves in cycles. Home values are appreciating and this seems like it is still a
good time to buy in order to profit from home ownership. By remaining out of the market, or
renting, you may give away potential appreciation. If you have considered
selling your present home and “buying up”, don’t hesitate.
Don’t try to hold out for the maximum price on your sale. Remember that
acting quickly is likely to result in your being able to purchase at a lower
price and with a lower interest rate.
TAX ADVANTAGES AND INVESTMENT: Our personal homes still represent the
best tax shelter and investment that most of us can afford. The tax laws have
retained all of the benefits for home ownership. After considering the “tax
shelter” benefit, many are surprised to learn that owning a home can
cost little more or even less per month than renting.
Ownership frees you of dependence upon a landlord, eliminates the worry
caused by rent increases, and allows you to “create” your own
living environment to meet your family needs. Most homeowners will say that
there is nothing like the emotional well being provided by owning your own
So, this remains a great time to
purchase your home. Waiting for prices or interest rates to decline could be a
big mistake. The best place to start is by getting pre-approved for a
QUALIFYING FOR A
for a loan has become a bit more flexible and there is an array of loan
products now available to meet motivated buyer’s purchase needs. While the options for those with past credit
difficulties have declined, options still exist and this is an excellent time
to strengthen one’s credit profile. That doesn’t mean that everyone
is capable of buying a home, but you could be surprised.
A FREE counseling session, a
credit report and a few pieces of documentation can allow you to be
pre-approved for a specific loan amount.
Then, you can purchase a home, knowing in advance that you have the loan
funds available. At the very least,
such a meeting may provide a “road map” to what must be done to
be able to purchase a home in the future. You are urged to do this before you search
for the “right” home to buy.
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