With all the buzz about the housing industry, some renters are on the fence weighing the decision to buy a home or keep renting. This is a buyer’s market and there are plenty of “why” reasons to buy. So, the answer is really Why Not?
Econ 101: Just like the stock market, the best deal is to buy low and sell high. After 3 years of declining values, all indications are that prices have stabilized and will begin to increase by the end of 2011. Any home purchased now at the lowest price will gain equity for the future.
Candyland: Foreclosure properties, distressed home properties, etc. There are tons of homes on the market at prices buyer’s have never seen before and will likely not see for a long time. It’s like a kid in a penny candy store. There is so much to choose and You can get everything you want for less..
Government give and take away: Interest rates are still at historic lows, but they will not last forever. With economic strife, something has got to give. Interest rates have been very low for at least 5 years and holding. Forecasters say this year is the year they go up. Interest rates aren’t forever, but they do cost you more and also affect your ability to qualify for a loan.
$ave Money: If you are now renting, you are paying more than you have to. Usually, mortgage payments are less than rent. Plus, with tax time coming, the mortgage tax deduction and property tax deduction allows you to keep more of your money.
Live the Dream: Corny as it seems, everyone wants to own a home. Put a nail wherever you want. Create a reflection of your personality and your taste. It is your home, not someone else’s property.
Consider these statistics….
- 72% of Renters surveyed believe it makes financial sense to own a home. (NAR survey)
- 93% of Renters who just became homeowners said it was a good decision and they would do it again. (NAR survey)
- Harvard University’s Joint Center for Housing Studies, students from families that owned houses scored much higher on Peabody Individual Achievement Tests for math and reading than those from families who rent.
- In 2007, the median net worth of home owning families was $234,200 compared with $5,100 for renting families, according to a Federal Reserve Board report on household finances.
Opportunity is knocking on your new front door. Open it up and walk through.