8 Great Reasons to Buy a Home Right Now

If you're like most first-time home buyers, you have probably listened to advice from your friends, family and coworkers, many of whom are encouraging you to buy a home. Even with all the encouragement, you might still have concerns and doubt if buying a home is the right thing for you. But guess what? Reservations and stress are normal!

Just like any major purchase, the more you know and understand the less scary the entire process will be.  Here are the 8 great reasons to buy a home right now:

1.) It will be yours
According to the National Association of Realtors, pride of ownership is the number one reason why Americans yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you a sense of stability and security. It's making an investment in your future.

2.) You can own for less than rent
If you rent a single family home in Phoenix with 3 bedroom and 2 baths, you will be paying on average $1,000 a month. That same home could cost you about $400.00 a month for the principle mortgage payment. If you can qualify for a loan, why give away your hard earned money, when you can use it to build your long term financial wealth?  (*example based on an $80,000 purchase price and does not include taxes, insurance or down payment figures).

3.) Future appreciation
Real estate moves in cycles, sometimes up, sometimes down. Historically, in a healthy market, home values have consistently appreciated. Home prices have never been better! But they will not stay like this forever – don’t find yourself saying “I wish I would have bought back then…”

4.) Affordable interest rates
Mortgage interest rates are averaging around 4.50%. What does that mean to you as a home buyer? When the interest rates increase, the amount of home you can afford decreases. The lower the interest rate, the more you can qualify for which increases your purchasing power. If you can comfortably afford a $1,000 a month, a higher interest rate could dramatically change the size of home you can buy.

5.) Great loan programs
Besides the great interest rates, there are some equally great loan programs available today that weren’t available a few years ago. Most cities are offering interest-free grant or bond money to help their communities revitalize the housing markets. Other programs that have been around for years, however, not as readily available include the Fannie Mae HomePath programs and the FHA 203K rehab loans. The evening news would like you to believe it is difficult to buy a home today – that is simple not true. There are plenty of options available for home buyers.

6.) Mortgage interest deductions
Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment.

7.) Pay less in taxes
IRS Publication 530 contains tax information for first-time home buyers. Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. If you own a home, you may actually pay less in taxes than if you are renting.

8.) Contribute to the housing recovery
Fear is a pretty powerful motivator. Right now, our housing marketing is feeling the affects of fear at a heightened state. I realize none of us want to be the person who buys a house and later finds out his co-worker bought bigger and for a better value. But our fear of the outcome is only continuing to contribute to the declining economic and marketing conditions. The longer we are afraid, the longer the housing prices will remain flat.

Let’s set aside the recent past and all the negative media reports and look at reality for a moment. The housing prices have never been more affordable in the history of the Phoenix market. There are plenty of unbelievable opportunities out there. I understand the fear – trust me, I get it. But if you do your homework first, and you don’t buy out of emotion, you will be ok. My team can help you make a smart move which will be a positive investment in your future. Contribute to the housing recovery - buy, sell, move-up or invest. Call us today – let’s get started!