Reasons to Buy Now
You can land a deal
Many houses are on sale at bargain prices right now. On average, homes are about 30 percent cheaper than their peak costs were at one point. Right now it’s a buyer’s market as many other buyers have disappeared since the larger tax credits on home purchasing have expired.
Mortgages are affordable
Guaranteed Rate is offering a 30-year fixed rate of 4.250% with a 4.175% APR (as of 10/21/10), which is a historically and consecutively low rate. As recently as five years ago, Guaranteed Rate was offering a 30-year fixed rate of 6% – the difference is drastic and therefore now is the time to buy.
You’ll save on taxes
Mortgage interest can be deducted from your income and real-estate taxes. There’s also a chance you can receive a tax break on capital gain once you sell. Of course you’ll have to itemize your deductions in order to receive the income tax break. Naturally, tax breaks are worth more when you earn more per year and have a larger mortgage.
It’ll be yours
You can paint your walls as many colors as you like and allow your pets to live comfortably. You won’t have to listen to those upstairs “stompers” and you can live with as much heat or air conditioning as you desire.
As you pay the principal repayment, remember it isn’t exactly a cost. You’re basically paying yourself by rebuilding equity. As a forced monthly savings, it’s a good discipline.
Take your pick
The amount of available homes in this country is well above typical levels and enough for about a full year’s worth of sales. Currently, the number is close to 4 million. Homes keep appearing on the market which means multiple options and better prices.
What do you think?
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