10 REASONS TO BUY A HOME
from The Wall Street Journal
1. You can get a good deal! This is a buyer’s market. Prices have come down quite a bit since the peak, 20-50% depending on the area. Prices have now been going up for 8 months. Could they fall again? Yes, they could, it is nearly impossible to time the bottom of the market but it doesn’t matter in the long haul.
2. Mortgage rates are incredibly low! You can get a 30-year loan for around 4.3%— this is a record low. Less than 2 years ago interest rates were around 6.3%. This drop lowers your monthly payment by 1/5th. If inflation picks up these rates will disappear. If have deflation you can refinance.
3. Tax Savings! You can deduct your mortgage interest from your taxes,
4. It will be YOUR home. You can remodel whatever you want. You can paint to your liking. And most of all, you are earning equity in your home every month.
5. You’ll get a better home. Do the math between renting and owning, it is quite possible you can afford to buy a nicer home than you can rent.
6. Owning offers some inflation protection. This concept isn’t perfect but studies by Case-Shiller and other economists suggest that owning property, over the long-term often beats inflation by a few percentage points each year.
7. It’s risk capital. Your home isn’t a piggy bank or the stock market and shouldn’t be bought as a means to get rich, but in a few years your home will be worth more than it is today. Equity in your home is another way of linking part of your portfolio to the growth of the economy.
8. It’s forced savings. If you can save $400/month by renting instead of buying will you save the $400 for your future? Probably not. If your mortgage payment pays a portion of the principle you are in return paying yourself and building equity.
9. There is a lot to choose from. While most of the “great deals” are short sales in San Diego there are tons of homes to choose from. At the time of writing this we have 182 detached houses and 62 condos on the market in 92106 and 92107.
10. Sooner or later, the market will clear. Economists say the recession is over and housing prices have been slowly creeping up for 9 months. Will it dip again this winter? Maybe, but with interest rates this low now is the time to buy!
from The Wall Street Journal
1. You can get a good deal! This is a buyer’s market. Prices have come down quite a bit since the peak, 20-50% depending on the area. Prices have now been going up for 8 months. Could they fall again? Yes, they could, it is nearly impossible to time the bottom of the market but it doesn’t matter in the long haul.
2. Mortgage rates are incredibly low! You can get a 30-year loan for around 4.3%— this is a record low. Less than 2 years ago interest rates were around 6.3%. This drop lowers your monthly payment by 1/5th. If inflation picks up these rates will disappear. If have deflation you can refinance.
3. Tax Savings! You can deduct your mortgage interest from your taxes,
4. It will be YOUR home. You can remodel whatever you want. You can paint to your liking. And most of all, you are earning equity in your home every month.
5. You’ll get a better home. Do the math between renting and owning, it is quite possible you can afford to buy a nicer home than you can rent.
6. Owning offers some inflation protection. This concept isn’t perfect but studies by Case-Shiller and other economists suggest that owning property, over the long-term often beats inflation by a few percentage points each year.
7. It’s risk capital. Your home isn’t a piggy bank or the stock market and shouldn’t be bought as a means to get rich, but in a few years your home will be worth more than it is today. Equity in your home is another way of linking part of your portfolio to the growth of the economy.
8. It’s forced savings. If you can save $400/month by renting instead of buying will you save the $400 for your future? Probably not. If your mortgage payment pays a portion of the principle you are in return paying yourself and building equity.
9. There is a lot to choose from. While most of the “great deals” are short sales in San Diego there are tons of homes to choose from. At the time of writing this we have 182 detached houses and 62 condos on the market in 92106 and 92107.
10. Sooner or later, the market will clear. Economists say the recession is over and housing prices have been slowly creeping up for 9 months. Will it dip again this winter? Maybe, but with interest rates this low now is the time to buy!
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