Why Buy a Home Now?

The question really is, "Why not buy a home now?" Is there something about your home that you don't like? Do you need more space? Do you need or want to move to a different neighborhood or area? Don't Wait - Buy now.

Here are a few facts that will ring true about buying a home right now. It's like anything else - if you wait too long, opportunity will have passed you by and you will be looking in the rear view mirror asking yourself why you didn't act then.

1. Interest rates are still at all time historical lows. But if you feel they will go down - why wait? You can refinance as soon as rates go down. Or you can buy down your rate or get a deal from your builder or mortgage broker to buy down your interest rate for a period of time. The economy is solid now, unemployment is down, if your current financial picture is stable - there is no reason to wait.
2. Home prices will go up. That is a reality. Prices of materials and land increase all the time, so homebuilders often have no choice but to raise prices. That also works to your advantage. If you buy now, you will get equity in your home which benefits your overall wealth portfolio, your credit rating and the ability to obtain credit cards, car loans or home equity loans. Plus, when you go to sell the home, the less you paid, the more you earn on resale.
3. Investing in a new home can still be the best investment in town. Typically homes earn 5% or more each year on appreciation. New homes earn more equity faster than existing homes. On a $300,000 home, in five short years you will have earned $83,000. How much money would you have to invest in a high risk stock to reap this kind of dividend? A new home is a low risk investment that gives back every day in other ways, making a new home the best investment.