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Archive for October, 2010

10 Reasons To Buy A Home, Now

Tuesday, October 26th, 2010

I read a positive housing article that was passed on to me, it lists “10 Reasons To Buy A Home, Now.”  I don’t understand why this message isn’t on every homebuilder’s website, I guess it’s now on Landed Gentry’s website and that is what matters. For the millions of American’s homeownership is a positive thing, here are some meaningful things to consider as you consider your new home.  Please take a few minutes to read and feel free to share it with others. 
1.  You can get a good deal.  This is a buyers’ market.  Prices on average have come down about 30% from their peak according to the Case-Shiller Index.
2.  Mortgages are cheap.  You can get a 30-year loan for around 4.3%. As recently as two years ago, they were about 6.3%.  That drops your monthly payment by 25% or more.  When inflation picks up, and it will, you won’t see these mortgage rates again in your lifetime.

3. You’ll save on taxes.  You can deduct the mortgage interest rate from your income taxes and you’ll get a tax break on capital gains when you sell.

4.  The home will be yours. You can have the kitchen and bathrooms as you want. You can move the walls, build an extension or paint everything bright orange. These types of changes are impossible for renters.

5.  You’ll get a better home.  In many parts of the country it is really hard to find a good rental.  Many of the best places have been sold as condos.  Generally speaking, if you want the best home, in the best neighborhood, you’re better off buying.

6.  It offers some inflation protection.  Studies by the Case-Shiller Index suggest that, over the long term, housing has beaten inflation by a couple of percentage points a year.

7.  It is risk capital.  No, your home isn’t the stock market and you shouldn’t view it as the way to get rich.  Sooner or later the economy is going to grow and real estate prices will head up again, too.

8.  It is a forced savings.  Part of a mortgage payment goes towards the principle repayment.  You are just paying yourself by building equity.  As a forced monthly savings, it is a good discipline.

9.  There is a lot to choose from.  Builders are sitting with inventory.  They have also introduced new model homes that are more energy efficient, and in many cases more affordable to own.  That means great choices, as well as great prices.

10.  Sooner or later, the market will clear.  Demand and supply will meet. As hard as it may be to believe, demand will exceed supply, the price of labor and materials will increase leading to higher prices.

Now is the perfect time to buy if you qualify for a mortgage, especially if you don’t have a home to sell.

Brian Gentry – Landed Gentry Homes and Communities