Check These Out

4 Questions Hold the Answers. Should You Buy a Home Now??

Tuesday, July 22, 2008 posted by Tommi Crow

Happy Homeowner

News Flash:   The housing slow down has a big upside.   Homeownership is now within the reach of millions of Americans who previously found themselves priced out of the real estate market

Today’s reduced home prices, combined with low interest rates, mean that many of you who believed homeownership was out of your grasp, now find that you can well afford a home to call your own.

So, with the ecomonic stars aligned in your favor, is the now the right time to jump in the market and buy a home for your family?    

To find the answer, ask yourself the following 4 questions.   If your answer is “YES”… NOW is Your Time.

  1. Will homeownership save you money on taxes?   Property taxes and mortgage interest are fully deductible in 2008, meaning that Uncle Sam pays part of your mortgage for you.   Ask your accountant how much money you will save, if you own a home versus renting one.
  2. Would you like to lock in your monthly housing expenses?    Buying a home, with an affordable fixed payment, eliminates the uncertainty of rising rents in the future.    (Caution:  Remember that mortgage payments stay the same.  Taxes, homeowners dues and insurance are always subject to change.)  If setting a limit on future housing expense is important to you, then buying a home and locking in your monthly payment is the answer.
  3. Will owning a home improve your lifestyle?   Homeownership is a wonderful thing.    In addition to building equity, nothing provides a sense of peace and well being like ownership does.  If you enjoy your own style, privacy, working around the house, having additional space or a pet, ownership is the only way to go.   
  4. Would you be OK with breaking even?   Buying a home is not an investment.   It is where you live, and, you have to live somewhere.   While the possibility of making money on a home is great, there are no guarantee’s.   If you were to sell in 2-3 years, would it be OK, if you only got your money back???    

If you answered “YES” to the four questions above, then you should seriously consider the opportunity you now have to buy and finance a home for a low price.

After all, if renting is so great…why does your landlord own???