If you’ve been straddling the fence about buying a home, you could be kicking yourself when this unique window of opportunity closes. Never in history have the cards beens stacked for the buyer as they are now. Here are eight reasons that will convince you that NOW is the right time to stop renting and buy your own home. 1. The market is with you. A Buyer’s Market occurs when there are more sellers than buyers, which results in more choices and lower prices due to excess supply. Homes are bought in both Buyer’s and Seller’s markets, but for the purchaser, now is the time they will get the most bang for their buck. 2. Favorable interest rates. As of the week ending April 16, 2009, a 30-year fixed rate mortgage averaged about 4. 82 percent. The same time last year, the same mortgage was 5. 88 percent. Five-year-Hybrid Adjustable Rate Morgages (ARMS), were 4. 88 percent, down from 5. 48 percent a year ago, and the lowest since 2005. Imagine knowing that for the next 30 years, you’ll pay under 5 percent for your mortgage. 3. Foreclosure opportunities abound. Currently foreclosure properties make up about one quarter of all house sales. In California, 55 percent of all closings are lender-owned properties. Banks that do not want to be in the real estate business are dictating the price of homes, and they are anxious to cover their investment and sell. You have to be careful of what you’re purchasing, but the deals are out there. 4. Tax credit for first time buyers. If a buyer has not owned a home in the past three years, and falls in the eligible income range, they can take a tax credit worth 10% of the home’s sale price, up to a maximum of $7,500. This applies to homes that have closed between April 9, 2008 and before July 1, 2009, and can be applied to either the 2008 or 2009 taxes. The really nice part of this tax perk is that it is a true credit. If you owe $8,500 in taxes, the $7,500 refundable credit comes off the top, leaving an amount owing of only $1,000. Not only is this a refundable tax credit, but it’s also a loan. This means that within two years buyers must begin paying it back at no more than $500 per year for 15 years. If the home is sold during that time, the amount is withdrawn from the profit. If there is no profit, the loan slate will be wiped clean. 5. The cost of rent is not going down, but house prices are. The cost of buying a house has gone down in most of the U. S. , in some areas more dramatically than ever. This drop in price has not affected rent prices, which have remained fairly solid. According to a report from John Burns Real Estate Consulting in Irvine, California, which surveyed 50 percent of the 76 main area markets in the country, the average person can buy a house for less than they could rent one. 6. Solid investment. In this tenuous market of shaky hedge funds and bankrupt financial institutions, it’s good to have an investment that you can feel relatively safe with. Every dollar you pay against your principle goes back in your own pocket when you finally sell, and with some extra added profit to boot. 7. More House for Your Money. With the combined lower prices and record low interest rates, a new buyer can start out with far more house than they could have if they had entered the market four years ago. 8. Today’s Built in Safety Features. Some states, such as California are trying to make it easier for people to invest in a home. The California Association of Realtors have introduced the Housing Affordability Fund’s Mortgage Protection Program. For a house purchased in 2009, if a homeowner is unable to make their payments, the fund will cover up to $1,500/month for six months.
