5 GOOD REASONS TO BUY NOW
1. Prices in the neighborhoods you prefer are currently relatively stable -- either holding steady or increasing slightly, or, -- the pace of price declines has slowed dramatically meaning the major decline is over. If you are ready to move, the small penalty you might pay by missing the absolute bottom of the market may not mean much.
2. You plan to stay in the home for five years or more. If you plan to stay that long before selling, leading economists say you will probably have gotten beyond this price downturn and you'll come out ahead on price when you sell the home.
3. Your rent is relatively close to what your mortgage payment would be. If you qualify for a mortgage, you will be building equity in your new home and you will be able to deduct the mortgage-interest and property taxes on your federal income taxes.
4. You've found the perfect home in the right area. The schools are great. You know it will be hard to find another home as nice as the one you have your eye on. In a better housing market, you might have much more competition for that home and end up paying more for it if its even available at that point.
5. You've built equity in your current home and are moving to a place where homes prices are lower in a market where your money will go a lot further.
5 REASONS TO WAIT BEFORE BUYING
1. If you have lived in your current home for less than 2 years, there is a good chance that you haven't accumulated any real equity in your home. In fact, you may have negative equity, (you owe more on your mortage than the home is now worth) if you live in certain areas of the country.
2. Your job isn't secure. If you may get laid off or lose your job altogether, it's better to stay where you are until things improve. If you lose your job and have to move some distance, it'll be much harder to come out ahead selling a home you just bought.
3. You don't plan to stay in your next house for at least 5 years. While it's not important to buy at the exact bottom of a home price curve, it is important that you stay long enough to ride out the cycle. Prices will certainly recover but it may take a few years.
4. You don't have good credit or a sufficient down payment. Because of the sub-prime mortgage mess, lenders are more careful today about who they'll give a mortgage to. Speak with a number of lenders about different programs they offer, but don't be surprised if you are turned down completely.
5. You have an existing home to sell in an area where prices are still falling or where many homes are in foreclosure or already bank-owned. In such a "distress sale" neighborhood, your buyer prospects may be just "bottom-feeders" looking to buy a home well below its real market value if the market were in a normal situation.
For more information on Tampa Bay real estate opportunities, I invite you to visit my full Tampa Bay Florida Real Estate website and then call me at (813) 263-6806 or email me at cheryl@cherylstimac.com
.
3 comments:
Great information. I think that people need to consider these points before buying, I know I am. I have been looking at Florida property and trying to decide if now is a good time to buy. With what I have researched so far it seems like prices will never be this low again.
As you know, it's getting harder and harder to get buyers approved for loans, well in the next 2 months there will be nothing but bad news regarding lending. On Oct. 1st FHA is going to tighten their belt, new federal gov regulator is being placed in Fanny Mae to set new rules on lending, which means it's only going to get tougher to get that loan. Fanny Mae just anounced they will be writing off over 1 BILLION in loans. This is a major problem for your buyers trying to buy and your sellers trying to sell their home.
There is a silver lining here. I can show you how to get that home sold in 2 weeks with multiple buyers that we can get approved down to 550 FICO. We also offer 100% funding for Short Sales and REO's.
Check out www.cashmeansfreedom.com for details on how you can turn all this around in your favor or call Jeff at 360-477-4201 We are here to help you get those homes sold!
Regards,
Jeff A Smith
I just finished taking a really great 3 day seminar with Jason Rodriguez, he was amazing! It was called Creative Investing and Wholesaling, check out his website it will have a lot more info www.elitementoring.com
Post a Comment