5 Reasons Why You Shouldn’t Wait Until 2011 to Buy a Home
1) Interest rates are on the rise. This is by far the most important reason why you shouldn’t wait to buy a new home. People are waiting on prices to drop, but as they do, rates are rising. Buying a home NOW can save you tens of thousands of dollars in interest, compared to the few thousand you might save on the purchase price if you wait until 2011.
2) Supply is dwindling. As more and more people start to feel better about the economy, and President Obama signing the tax cuts yesterday is sure to drive a positive reaction, the number of available homes to buy gets less and less each day. People are pulling the trigger on deals now while rates are low, because they know they will go up soon. As the supply of homes for sale goes down, competition for available homes go up, which means you will be less likely to get a great deal or discount.
3) Tax Credits. Why not buy a home now and take advantage of the tax advantages? Homestead tax credits are a great deduction you can take for the 2010 tax year. Why wait until next year to get a $1000 deduction, when you can use it this year?
4) Home prices will go up soon. How will you know that the market has rebounded and the economy is recovering? When home prices start to rise again and the number of foreclosures goes down as well. You don’t want to be left still waiting on the sidelines AFTER everyone else has gotten to pick from a better selection of homes, gotten lower interest rates and had less competition to deal with. By the time you know the market is back, it will be too late. You will have missed your window of opportunity for the best deal.
5) Builder’s incentives will end soon. Because of the slower economy, many new home builder’s are currently offering very generous incentives to lure people into buying a new home. As mentioned before, supply is dropping and once builder’s no longer have to worry about an oversupply of inventory, the incentives they are offering will disappear. Some builder’s are offering as much as paying for all closing costs, and free upgrades. This can be a savings of thousands of dollars in additional free money right now.
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