Mar
2
Now is the time to buy a home… period!
Posted by Guy Lofts under For Buyers, For Sellers, General Information, realestate expertise, buyer info, Market, Success, Ask a REALTOR
In my home market of Madison Wisconsin I often get asked questions like, is it the bottom of the market? should I buy now of wait for…? (you add the end of your choice.)
If this is a home for you and your family, you are financially ready and you are ready to stay for 5 years, Absolutely. Yes
Here are some very compelling reasons to buy NOW!
- Interest rates at record lows - make for incredibly monthly payments. Creative finance tricks can make payments even better!! real estate guy’s blog
- Inventory - lots of choice search for all area homes free
- buy at 2004 prices
- Obama’s tax credit of $8,000 now refundable
- sellers are in a mood to negotiate
- you can not time the market.
So here are some answers to common questions.
- I want to get the bottom of the market. I say, If you can time the market, i want you to tell me about the stock market too. No you can not time it. Infact when you know the market has changed, so will all buyers, who will be out in force, and all sellers who will be less likely to deal!In other words by the time you know the market has bottomed, it will be too late.
- Wait for? A better home, a better home will always come up, why not buy both? It is a great time to buy. - rates to come down. The word from experts they are more likely to go up. a 1% rise in rates will cost you an additional $2700 a year for a $300,000 loan. or 27,000 in 10 years. to the bank.
- If prices do drop further, a possibility, but I do not believe they will in Madison wi. If you are to live there until 2016, they will be up by then.
QUESTION? What item do you buy and it appreciates as you use it? (or at least has the chance of)
a car? a DVD player? I phone? sweater? dishwasher? Real Estate?
If you really want to make a truely good move for your family, Real Estate Guy will not only help you find it, but give you the coaching to ensure you make a good decision and enjoy the process.
Real Estate Guy can help you in the Madison Wisconsin area. Sign up here for a free book “My first home” on our web site and click the first home box.
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COMMENTS (2)
These are straw men. Your post focuses on time price fluctuations. The real problem with real estate in Madison is that it’s overpriced with respect to rents. In the 90s you could take your money out of other investments, or take out a loan, and forgo less money than you would pay to rent. You could buy property, rent it out, and earn a decent return compared to other investments. Now rents are low because we built more housing units than we have families in need of them. Whether prices go up or down in the next few years, you’re forgoing a lot of money to hold real estate. Interest rates being low is actually a reason to be cautious about real estate. High rates push prices down. If you buy real estate with debt when rates are high, you can always refinance when rates go down. If you buy when rates are low, however, you cannot refinance into a lower principal amount when rates rise and prices fall. This doesn't mean you shouldn't own any real estate, especially if it's just one home for your family's use. I'm just saying owning it in this market is costly for reasons that have nothing to do with the straw-man counter arguments you list. March 3, 2009 at 12:34 pm
Charles, You make some good points, although I do not follow or agree to them all, i have approved because they are intelligent and add to the discussion. I just don't have time to discuss. Thanks for coming to the site. March 9, 2009 at 10:27 pm