10 Reasons to Buy a Home!!

http://online.wsj.com/article/SB10001424052748703376504575492023471133674.html?mod=WSJ_RealEstate_LeftTopNews

Brett Arends of the Wall Street Journal Online (at the above link) wrote a great article on the current benefits of buying a home in today's economic environment. Please read his actual article for specifics; what I will do is comment on some of his thoughts.

His thoughts mirror points I have made in previous posts on this blog.  His top 5 reasons are as follows:

1.  You can get a good deal:  Home prices have come way down.  Buying when the market is down can be a great investment whether you're looking to flip or occupy for the long haul.

2.  Mortgages are cheap:  mortgages are at or about all-time lows.  This environment has produced one of the cheapest borrowing platforms in history.  If inflation comes you will be in great shape and when rates begin to rise you will most likely not see a return to these low borrowing cost levels again.

3.  Save on taxes: write-offs abound with real estate; mortgage interest and property taxes can be written off against personal income tax.  With investment property depreciation expenses essentially reduce your taxable income.

4.  It's yours: in like living with Mom and Dad or renting, the house and property is yours to do as you please (of course their are limitations).

5.  You'll get a better home:  This is in line with prices and interest rates. Right now you can afford much more house then you could have a few years ago and that you will be able to have in a few years.


CAVEAT:  I've done a lot of preaching about what great buying conditions we have in today's market.  I want to caution everyone because I feel like i may have been a bit optimistic about things and possibly misleading.

What do I mean?  Well, unemployment is still very high, the economy is still on the unstable side and as we move towards November elections the economy tends to get even more unstable because the risks associated with changes in political leadership tends to scare investors on Wall Street. 

I think it is extremely important to have a full grasp on the mortgage process, the fees associated with home buying and a realistic view of your current financial status.  As we can learn from the recent Great Recession we are trying to crawl out of, knowledge is power and the uneducated consumer can be taken advantage of and make poor decisions that will have long term effects.

So although this is a good buying environment in terms of real estate fundamentals, please be cautious (what investors call being risk averse) and take the time to educate yourself and speak with unbiased professionals that can help you make quality real estate decisions.

Feel free to contact me to discuss real estate anytime, free of charge, or email or comment on the blog and I will be more then happy to help you or lead you to a professional that can answer your question(s).

Now it's time to watch Mickey's Playhouse with Molly....a show I highly recommend!