There’s No Better Time Than Now to Buy Real Estate
Ryan Lynch is part of the top notch marketing team for a real estate brokerage that specializes in Southwest Austin real estate http://www.jimolenbush.com/ and neighborhoods such as Covered Bridge Austin http://www.jimolenbush.com/covered-brdige.htm in the southwest Austin, Texas area.
If you are considering purchasing a home, there are many things for you to take into consideration. This is particularly true if you already own a home, as purchasing a new home will likely involve selling your current home as well. With the current state of the economy, you will likely be forced to sell your home for less than it would have sold for just a couple years ago. At the same time, if you have been in your home for several years, there is a good chance that you will still be able to sell the home for more than you originally paid. Furthermore, by taking advantage of a down market, you will be able to purchase your new home for far less than you would have been able to just a few years ago. With so many advantages to buying now, it is easy to see why many people are choosing to purchase a new home.
In addition to being able to take advantage of the low price tags that are currently found on most of today’s homes, the homebuyer’s tax credit provides even more reason to purchase a home now. Thanks to new regulations, you can enjoy a tax credit if you are a first time homebuyer or even if you already own a home and you want to purchase a new home. Whether you are upgrading your current home or need to downsize, you can enjoy a tax credit while also taking advantage of the prices found on today’s homes.
The fact that interest rates are down is another reason to make a property purchase now. In fact, by waiting and purchasing a property after the interest rates start to go back up, you can potentially lose a significant amount of money. If you purchase a home for $400,000, for example, you will have about $25,000 less purchasing power for every half point that the interest rate increases. For every 1 point increase, you lose about $50,000 I purchasing power while a 2 point increase will cut you out of about $100,000.
Small increases in interest rates will also have a huge impact on how much you can expect to pay each month toward your mortgage payment. Consider these facts, which are based on the assumption that you put down 20% of the purchase price and qualify for an 80% loan:
* A home that costs $425,000 with an 8.25% interest rate will result in a payment of about $2,554
* A home that costs $450,000 with an interest rate of 7.75% will result in a payment of about $2,579
* A home that costs $475,000 with an interest rate of 7.25% will result in a payment of about $2,592
* A home that costs $500,000 with an interest rate of 6.75% will result in a payment of about $2,594
* A home that costs $525,000 with an interest rate of 6.25% will result in a payment of about $2,586
Although the monthly mortgage payments are nearly the same, the budgeted purchase price of the home increased by $100,000 by simply decreasing the interest rate by 2 points.
Obviously, you need to weigh the pros and cons of owning a home before you make any kind of decision. If you are serious about becoming a homeowner, however, there is no better time than now to take that first big step toward achieving your goal.
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