1. $8000 Tax Credit for first-time homebuyers – there is no doubt that the tax credit is responsible for a good percentage of the increase we are seeing in real estate buying.
Rules for 2009 first-time homebuyers tax credit
Does not have to be repaid unless the home is sold within three years.
Applies only to first-time homebuyers, defined as those who have not owned a home within the previous three tax years.
Available only for homes purchased between Jan. 1, 2009, and Dec. 1, 2009.
Restricted by income; phases out for individuals with an adjusted gross income of $75,000 or above and for married couples with a combined adjusted gross income of $150,000 or above.
Tax credit is for up to 10 percent of the purchase price, up to a maximum of $8,000. For example, a buyer of a $150,000 home could receive a tax credit of a maximum of $8,000, while a first-time buyer of a $70,000 home would be eligible for a tax credit of $7,000
The credit can be taken on 2008 taxes even when the purchase is made in 2009.
2. Interest rates are the lowest they have been in years!
Because the interest rates are near historical lows, not buying now could have you experiencing regret later. A 30-year loan of $250,000 at an interest rate of 7% in comparison to 6% will cost you an additional $60,000. This is truly a great time to buy real estate
3. “Trade up” using your equity.
According to the National Association of Realtors, over 79% of the 50+ population are homeowners. Of those, 67% own their homes free and clear (mortgage-free). Are you one of those? If so, you are in an ideal financial position to upgrade your lifestyle while the prices are right and the selection is abundant.
4. Low price, low interest rate today = larger gains in the future
Prices are low today and that mixed with low interest rates is not only a “good buy” but a great investment for the future! These prices and rates will NOT stay this low, the natural swing will bring them back up, and that’s why buying real estate today is a good idea!
5. Builder Incentives
If you want to buy a newly constructed home, this is the time. With the builder inventories being high, there are great concessions being given to attract the many buyers in this market. But as the inventories decrease, so will the concessions!
6. Sellers are motivated
In hot sellers’ markets, everything tends to get rushed: the house hunting, the offer-writing, the negotiating… everything! Now, a buyer can take his/her time looking through available inventory and visit several homes before making an offer. Many sellers are willing to negotiate and work towards a win-win situation that works for both parties.
7. There are a lot of buyers in the market
Sell now when there are fewer sellers and more buyers. With more buyers in the market your home becomes highly sought after in your market with more chances of pairing up with the right buyer.
8. Good inventory to choose from
With a high inventory of properties on the market, including new home construction and foreclosures, you have choices that buyers just a few years ago would have loved.
9. Good market for investors
With the low prices and the low interest rates and the abundant inventory of homes and foreclosures, this is a great time for investors. Now is the time to start building wealth with real estate, start developing your own portfolio of homes.
10. You can build long-term wealth
60% of the average homeowner’s wealth comes from their home’s equity*. You might be wondering if buying a home right now is a smart financial decision. The fact is homeownership is the key to building long-term wealth, no matter when someone buys. Studies show that over time most homeowners will steadily build equity. Of course, owning a home is much more than a way to gain a financial edge; it’s also where you raise a family and create life-long memories. Home ownership is an investment in YOUR future. According to Housing Market Facts published by National Association of Realtors, the average homeowner’s net worth is 46 times the net worth of a renter! The average homeowner’s net worth is $171,000 compared to $4,800 for renters.
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