1. Market reports indicate that we are either at the low of the price drop or very, very close. Today’s Union reports, “Standard & Poor’s Case- Shiller Home Price Index showed San Diego prices dropping by the smallest amount in nearly three years; a negligible 0.09 percent from March. The national decline was 0.56 percent, the lowest since last June”.
Think about the fact that home prices in the U.S. have risen three percent to six percent a year for the past 20 years. That trend is likely to continue. So if you buy a home now, you’ve put your capital in a safe investment where it is likely to grow.
2. Interst rates dropped to below 5%, the lowest amount since 1971 when Freddie Mac began keeping data. That means that you will be able to pay more. It’s very interested to me how much value an extra $25,000 can add. I’ve noticed that if you can pay just a little more the return translates into a bigger house, better neighborhood, better yard…
3. First time homebuyer tax credit of $8,000. For now all reports indicate that this tax credit is available for this year, 2009. We don’t know what is going to happen next year. Why wait and lose $8,000?
4. Motivated sellers. Most sellers on the market right now must sell, even the banks.
5. Better than paying rent! The real cost of renting is higher than the monthly payment. There is also an opportunity cost equal to the amount you would gain by using the money to purchase a home instead. Even if the house you purchased did not appreciate in price, you would be able to sell it and recoup some of the money you put into it.
You’ll never be able to get an home Equity loan, have tax deductions for mortage payments or plant an orange tree.
If you are thinking about buying then call or email me and let’s get started on your own personal buying plan.
Thanks
Janet McCarthy
858-243-5719
