ERA-KING REAL ESTATE
IS NOW THE TIME TO BUY A HOUSE?
Without a doubt, recently, the most commonly asked question has been..."Is now the time to buy a house?"
Think about it for a minute. Back when we were having our 1st gas crisis and inflation was beginning to become a major problem. Does that sound familiar? The question everwhere was and still is "Is now the time to buy or should I wait?" In the early 1980's, interest rates rose to 18% and everyone would ask is this my last chance to buy a house? Shortly after, the savings and loan scandal took place and you could no longer assume loans. Adjustable rate mortgages became popular and everyone asked, "do you think now is the time to buy a house?" I can take you into the 90's and all the way to the current day, but I think you get my drift-there seems to always be a reason to ask if now is the time.
In order to answer the question, we must first understand the reason for home buying. Home ownership is more than a purchase; it is and will continue to be "The American Dream". It is the average family's largest investment and represents the largest portion of the family wealth. Equity in a home can mean a lot of things to a lot of families. It can mean a college education for the children, security in retirement, or a head start for our grown children after we are gone. A home is not a short term investment intended for instant wealth. It is an investment that pays off in many ways for a long perion of time. The bottom line: you can pay someone else's rent and let their family receive the benefits or you can own your own home.
So now, let me answer the question. The answer is yes. If you had bough a home at any time during the last 30 years you would have been glad that you did. The very same thing applies today. Experience tells us that inflation and a weak dollar will cause interest reates to increase making house payments higher and knocking some families out of the market. As the po9pulation grows, there will be less land available and prices will go up. Once you own your home, these situations work in your favor and not against you. This will allow you the opportunities mentioned above or the caability of buying a bigger home down the road without additional funds. However, I have not gotten into tax breaks and the many other advantages of home ownership.
Now is the time to buy while interest rates are historically low. I know because I've been here before.
Ex. Mortgage Amount $130,000.00
6.5% Payment-------$821.73
8% Payment-------$953.94
Difference-------------$132.21 Is now the time to buy a home?
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