THERE’S NEVER BEEN A BETTER TIME TO BUY!
While this may sound like
“just so much real estate hype” there are some compelling reasons
that 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 fluctuating between the 4.75% to 5%
range. There is optimism that rates
have stabilized, but no one knows for sure what will happen with rates. While
we expect rate stability over the next several months, be cautioned that the longer
one waits to take advantage of the still historically low rates, the greater
risk that they could increase. Some are predicting an increase in rates as
the threat of possible future inflation grows.
PLENTY OF INVENTORY: As interest rates have adjusted, both up
and down, home inventory has increased, due mostly to the recent housing
crises. This means that there are more homes on the market from which to make a
personal selection. While home prices are not escalating they are no longer
declining at any great rate (in Humboldt
County) so buyers should
still be encouraged to purchase soon. Buyers can now purchase at a
reasonable price and profit from the expected 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.
TAKE ADVANTAGE OF POTENTIAL FUTURE
APPRECIATION: The economy typically
moves in cycles. When home prices
begin to appreciate again (albeit, at lower than past double digit amounts),
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.
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 per month than renting.
INDEPENDENCE: 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 home.
So, this is 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 loan.
With all the recent media attention to the housing crises you may
understandably be worried that you are not “qualified” to purchase
a home. While loan qualification has stiffened, you may be surprised at the
continued 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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