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Buying Home Is Still A Great Idea

As the housing market remains in a slump around the country, it's still very much a buyer's market; making it an excellent time to consider buying either your first home or your next home. If you have good credit and you feel your job will remain secure in the future, there are certainly many reasons to consider buying a home right now. This is especially true if you are currently renting. Even though you may have thought you could not afford to purchase a new construction home right now, you may be surprised to learn that even those are not out of reach.

One of the reasons is the level of prices right now. Due to the fact that homebuilders are being forced to compete with the massive inventory of existing homes on the market, many have decided to slash prices and are now offering upgrades and options at either no cost or reduced prices. Right now prices have reached rock bottom in many areas. The prices for new market homes are about the same as prices for homes that were selling in the 1990s. If you have been sitting on the fence, thinking you would wait until prices hit their lowest to purchase, it's probably a good idea not to wait much longer. The housing market seems to have finally reached the bottom and demand is increasing. Once it completely returns prices are going to begin appreciating at a fairly rapid rate, according to some experts.

Some industry insiders have even predicted that buyers will not find these types of deals again in the future. Builders that own property are now trying to sell off the land. In some instances, it is possible to basically obtain the property for free just so the builders can remove it from their books.

Another important reason to consider buying right now is the low mortgage rates. Historically, mortgage rates have hit their lowest. Recently, rates for a 30 year fixed rate mortgage averages about 4.5%. The flip side is that tighter credit restrictions and standards have made it a challenge to take advantage of these low rates. Lenders today are commonly requiring applicants to have a credit score of at least 740 to receive the best rates. Before applying for a mortgage loan it is a good idea to get a copy of your free credit report and ensure that your records are accurate.

Now is an excellent time to take advantage of the low rates. If you believe that your income will remain at about the same level there are plenty of advantages to buying now. You might not be able to take advantage of the buyer tax credits but the low interest rates still provide a major incentive to purchase a home now. Experts have predicted they believe rates will remain relatively low over the course of the next year but probably for not much longer than that.

Tax advantages provide yet another reason for buying a home now. Regardless of whether you purchase an existing home or a new home, a home is still a financial asset that can provide tax benefits. One of those benefits is the ability to deduct your property taxes and mortgage interest from your income taxes. Also, when you do decide to sell your home you will not have to pay capital gains tax; at least not on the first $500,000. Furthermore, you will be building equity in your home with each mortgage payment that you make.

Another important reason to buy now are the improved building codes that have provided more energy efficient homes in recent years. This can be a savings benefit because such homes typically cost less to maintain and operate. A number of home builders are also now offering green options such as energy savings, water conservation, the use of recycled materials and the orientation the home to take full advantage of solar energy.

Many communities which were designed around new construction homes also offer an array of amenities such as parks, trails, swimming pools, golf courses and much more. Other communities even include clubhouses with other types of recreational activities as well as multipurpose rooms.

Finally, perhaps the best reason of all to purchase a home right now is the fact that you can finally have a place of your own. For many, the American dream still includes home ownership. The sense of security and stability that is associated with home ownership is something that is invaluable.

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