The market has changed. The lending game has changed. But homeownership is still the American Dream.
I can understand why younger folks (people in their early 20’s especially) might have a negative view of owning a home. They may have seen their parents go through some tough times recently. Like having to short sale their home…or worse letting it go into foreclosure. Maybe some of them have even witnessed people they know having to file bankruptcy. Times have been tough…no doubt.
But what they need to look at is this. Homeownship has traditionally been a great decision. Not only for the obvious reasons…like being able to make the home “yours” with decor, painting and landscaping…and getting one of the few tax breaks available. But for something more. Something that is hard to describe if you have never owned a home. It’s a feeling of pride. It’s also comforting knowing YOU are in charge…not your landlord.
Why buy now? Well..if you are reading this and you live in one of the many economically hard hit areas…like Arizona…then prices are SUPER LOW. I recently sold a home to a nice couple for 205k. That home last sold for 422K. Less than half of the price. AND they got a new loan with an interest rate of 4.5%…and a payment of around $1150. There is NO WAY they could rent a home like this for that price. NO WAY. In looking in MLS in that neighborhood for rentals…they are at least $1300…all the way up to $1550 per month. AND no tax benefits.
Are we at the “bottom” of the market. I don’t care who you listen to …NO ONE knows the answer to that question. If you “chase bottoms” whether it be in stock markets or housing markets…you may or may not win. When you KNOW it is at the bottom…you missed it! My good friend has a saying…”Figures don’t lie…but liers figure”. And there is A LOT of both going on.
I think the BEST reason for homeownership is simply having a stable place to live and raise a family…be it kids, dogs or cats! The original idea was to buy a home…pay it off…and be comfortable in your old age. That may not be YOUR plan…but it still has merit. Even if you have to move…rent it out. Owning something when someone ELSE is making the payment ROCKS. MANY smart people live on positive cash flow from homes they own. And when the prices start going up…and they WILL…you WILL have equity.
Why now though? INTEREST RATES. I know you hear all the time that rates are at an all time low. It’s because they have kept going down. But this you can count on. When the economy starts a recovery…rates will increase. This can make the difference in getting THE home in THE neighborhood that you truly want…or settling for less than what would really suit you.
So…get over the fear…stop listening to all the negative and conflicting news reports…and get into a home while the getting is good!
As always… if you are looking for a GREAT agent to help with your real estate needs please e-mail me at Adele@GreaterPhoenixHomes.com or give me a call (or text) at 602-504-3898 or 888-897-7821 x 114. Plus, I have a GREAT search tool on my web site that gives you the ability to search the entire MLS…just like agents do. Very COOL! Go to Metro Phoenix Homes and check it out! YOU can create and save as many searches as you would like…and it is THE SAME SEARCH I DO AS AN AGENT! You will LOVE it!
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