Why Should Buy A Home Now
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Owning your own home is part of the American Dream. It is a status symbol as well as a security. It is an investment into your future as well as a comfort. There are several reasons that you should consider for making your home purchase now.
1. Interest rates. Interest rates are very low right now. In fact, we have not seen these rates for decades. Purchasing a home now will allow you to obtain a mortgage with low monthly payments saving you thousands of dollars in interest over the course of the loan. Interest rates are bound to rise again as the economy stabilizes. The time is now to take advantage of historically low interest rates.
2. The real estate market might be at the bottom. Everyone has an opinion but no one knows for sure where the market is headed. Logic tells you that prices may be at the bottom and will perhaps stay there for a little while until the country recovers from the current recession. Don’t bother trying to time the real estate market to the day or month. If your time horizon for owning a home is five years or more than this is a good time to be a home buyer.
3. Do you really want to be a renter forever. Forget all of the financial aspects of owning a home for a minute. Isn’t it just nice to live in a home or condo that you own? You can decide what colors to pain the walls. You can decide if you want to change out the carpet. You get to decide if you want to remodel the bathroom. None of these things requires the approval of your landlord. Doesn’t that just feel good?
4. Build Equity. When you purchase a home or property you are creating wealth. As home values rise and mortgage payments are made, the value of your home increases. The difference between what the home is worth and what is owed on the mortgage is the available equity. As your equity builds so does your wealth. Assume you purchased a 100k home with a 15 year mortgage. Home values during that period went up anywhere from 1-5% a year during that fifteen years. When your mortgage is paid off you will now own a property that is worth anywhere from 120-175k, clear and free. You have just increased your net worth by that amount. Not only have your enjoyed your home during this period, you have created wealth by simply taking advantage of purchasing a home at the right time.
5. Leverage. Right now it is a buyers market. As the inventory of homes decreases this leverage will eventually go away. Most real estate markets are moving towards equilibrium. Home buyers did not have the same leverage that they had a year ago. I imagine a year from now home buyers will have even less control. It is best to buy when the seller needs you more than you need the seller.
There will probably never be another time that home prices are so low in comparison to their true value. With low mortgage rates and a large variety of homes to select from on the market, there is not a better time than now to purchase your dream home.
Marc Rasmussen sells Sarasota FL Homes For Sale
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