1. Interest rates are still historically low but they will not stay there forever. I vividly remember buying a home in 1980 at a 14% interest rate (and that was a good rate at the time). In 1982 we were able to refinance and got our interest rate all of the way down to 10%.
2. There is a large inventory of homes on the market. In other words it is a “Buyers Market”.
3. First Time Buyers can get an $8,000 Tax Credit. This means that in most cases the government will pay you $8,000 to buy a home.
4. My Buyer Rebate will put more money in your pocket. This money is in addition to the $8,000 tax credit and is in addition to any additional concessions provided by the builder (If you purchase a newly constructed home).
5. If you have a good credit score you can get a loan with as little as 3.5% down payment (F.H.A. loan)
6. Economist very rarely agree on anything however at the present time they all seem to agree on 3 things.
- (1) Owning a home is still one of the best ways to build long term wealth.
- (2) The government is spending money that they do not have which means the government will have to borrow a lot of money in the near to intermediate future. This will without a doubt drive interest rates up.
- (3) High rates of inflation are expected in the near to intermediate future again brought on by the high rate of expected government borrowing. I paid $50,000 for the home that I purchased in 1980 and I sold it in 1985 for $84,000 (I invested $5,000 in improvements over that 5 year period) the rest of the appreciation was brought on mostly by the high rate of inflation over that 5 year period (and I did not have the advantage of a low interest rate). Low Interest Rates, Buyers Market and Future Inflationary Pressures make now the Time To Buy.
