Ten reasons why you should buy a house NOW!!
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Has the housing crisis scared you out of the market? Too bad, because there are still
many good reasons to buy, writes Brett Arends in the Wall Street Journal. A few points to consider before hopping on the first train to rents-ville:
- You could get a deal: Prices are down—way down. “This is a buyer’s market,” Arends writes, especially if you’re willing to play hardball. Could prices drop more? Sure. But that “doesn’t really matter so much in the long haul.”
- You’ll save on taxes: Usually, “the breaks are more valuable the more you earn, and the bigger your mortgage,” Arends says. So run the numbers—you could save on income, real estate, and capital gains taxes.
- You won’t be starved for choice: You want a house? Take your pick. There is a “glut” of homes in America. That means lots of choice and, usually, lower prices.
- It offers some protection from inflation: Studies show houses tend to beat inflation, at least by a bit. “It’s not perfect,” the Arends notes, but it can be “valuable inflation insurance,” especially if you’re young and “thinking about the next 30 or 40 years.”
Click here to read the complete list and here for 5 ways to buy a cheap home.
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Not so fast Mike. We’re set to see another surge of homes to go on the market.
From Bloomberg News:
The slide in U.S. home prices may have another three years to go as sellers add as many as 12 million more properties to the market.
Shadow inventory — the supply of homes in default or foreclosure that may be offered for sale — is preventing prices from bottoming after a 28 percent plunge from 2006, according to analysts from Moody’s Analytics Inc., Fannie Mae, Morgan Stanley and Barclays Plc. Those properties are in addition to houses that are vacant or that may soon be put on the market by owners.
Then there’s something else that’s about to hit us in the next few months, that would be Alt-A loans. Those are the adjustable rate loans taken out about five years ago that are due to adjust. Do a Google image search and you will find a graph that lists the subprime alt-A’s and prime loans. Oct. was the month that they hit peak.
If you buy now you’ll still watch as what you just bought go down in price. I’d say hang on until at least spring.
This is exactly what Barbara said.
While I personally can’t wait to become a renter again, I hope that every person who might remotely consider buying my house reads this article and takes it to heart.
It is my understanding that some places are worse than others within the whole housing “paradigm.” For example Florida and Nevada seem to have the highest number of foreclosures.
True. I guess I should consider myself blessed that I live in a housing market that has been depressed from the start.
The Main Street banks have so many defaults on their books, unloading them is a priority. And they are selling them at money back prices. Selling a house for someone in standing is a nightmare right now.
So very true my friend and I know from personal experience.
It is a nightmare! Way too much inventory and not enough money. I am a Realtor, and just hung my license. It got to the point where I was spending more money than I was making!
There are a lot of lookers who can’t qualify for a loan and the sellers are all angry. I needed to take a break from all of this…………..There are a lot of short sales out there and when they figure out they can’t unload their house that easily, file for bankruptcy. They are now protected for a while, stay in their house because the foreclosure can take months to happen, and you as a Realtor are screwed. If the inventory is bad now, wait until these homes show up on the market. A lot of those foreclosed properties are no bargain either, the previous owners are mad at the banks, wind up trashing the house before they leave and the repairs are very costly! Been through it all………..
It is a real shame for the “American Dream” of owning a home right now. Banks have become spoiled. They don’t even see the 5 to 6 percent interest they can earn as something they are interested in anymore. You have to have PERFECT credit to get the loan or they dont want to mess with you.
People are upside down in their mortages and the financial institutions don’t want to work with them at all. So they walk away from their homes. I really can’t say I blame them. The banks would do it back to you in a heartbeat. Just the bottom line to them. But the homeowner is supposed to feel guilty?
Thanks for the information Barb. Very interesting indeed.
Do you have twenty percent to put down and a good credit score? Is your job stable? It is a good time if you qualify, however most people today are struggling with the thought of job security! It is the first time home buyers that we need to get this market moving again and the job market isn’t looking so good. We have a big problem on our hands and it is not going to get better for a long, long time.
By the way, if you are looking to do a move up or move down and you have a house to sell first, good luck with that! This is the worst housing market ever……..
All true. Every word. Thanks Barb.