Should I buy now?
All we hear right now is about unemployment, health care reform and bailouts. That doesn't mean there has not been talk of the real estate market and what is happening in that part of the economy. What I am hearing a lot about is should I buy now or wait for the market to bottom out? Depending on who you listen to the market may or may not be at its bottom and who in all reality can forecast it. Many of those so-called forecasters were the ones that missed all aspects of the economy as it was tumbling downward. And down is not always a bad place to be since the only other way is up. Whether we are at the bottom, close to the bottom or on our way up it is a good time to buy your home or condo.
Should I buy now? Absolutely, and let me tell you several factors that are in your favor by acting now and not trying to guess at a target that may always keep moving.
We have a tax credit! Let me say that again since you probably did not get the full impact of what that statement means in today's economic climate. A tax credit means you do not have to pay it back. That's right, it is free money and when is the last time you received free money. It is not as perfect as it could be because there are several requirements but all in all they are not that difficult. First, you must be a first time home buyer or not owned your principle residence in the last three years. Second, if you are single your income cannot exceed $75,000 per year and married couple's income cannot exceed $150,000 per year. The last part might be a little trickier since the tax credit is only if you close your home or condo on or before November 30, 2009. That is less than 45 days away and if you don't get moving now you are not going to make the deadline.
Another reason to ask yourself if I should buy now is interest rates are lower than they have been in years. Do you realize that you can get a 30 fixed rate for less than 6% from many lenders. That means you can afford more home or if you want you can buy a more reasonably priced home and keep the payments low, maybe even less than you are paying in rent. Would you have imagined several years ago that you could get free money and a great interest rate on buying a home? If you are like most of us you would have laughed us out of the place, but it is happening now. We would never have guessed it just like we are never going to guess the bottom of the housing market. So just do it!
