subject: Ten Reasons To Buy A Home [print this page] Enough with the doom and gloom about homeownership! Realtors in Albany and the surrounding cities are encouraged by the latest statistics and strongly believe that homeownership DOES make economic sense. Here are ten reasons why buying a home makes great sense!
1.You can get a good deal. This is a buyers market. Many buyers have vanished, as the tax credits on purchases have expired. According to Standard and Poors Index and the Capital Region Multiple Listing Service, prices have come down about 40% from their peak. Will prices fall further? Possibly youll never catch the bottom, and it doesnt really matter so much in the long haul.
2.Mortgages are cheap. Whats not to like? You can get a 30 year mortgage for around 4.25%. These are the lowest rates seen in many, many years. As recently as 2 years ago, they were over 6.3%. This slash drops your monthly payment by a fifth. If inflation picks up, you wont see these mortgage rates again in your lifetime. And, if we get deflation, and rates fall further, you can refinance.
3.Youll save on taxes. You can deduct the mortgage interest from your income taxes. And youll get a tax break on capital gains, if any, when you sell.
4.It will be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an addition, or paint everything bright orange! Few renters are so indulgent.
5.Youll get a better home. In many parts of the country it can be really hard to find a good rental. Generally speaking, real estate agents in Albany and throughout the Capital District believe if you want the best home in the best neighborhood, youre better off buying.
6.It offers some inflation protection. No, its not perfect, but Albany NY Realtors suggest that over the long-term, housing has tended to beat inflation by a couple of percentage points per year. Thats valuable inflation insurance, especially if youre young and raising a family.
7.Its risk capital. No, your home isnt the stock market & you shouldnt view it as the way to get rich. But, if the economy does surprise us and start booming, sooner or later real estate prices will head up again too.
8.Its forced savings. If you can rent an apartment for $2,000 /month instead of buying one for $2,400 / month, renting may make sense. But will you save that $400 for your future? A lot of people wont. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isnt a cost. Youre just paying yourself by building equity.
9.There is a lot to choose from. There are many homes to choose from. The Capital Region Multiple Listing Service puts the inventory below last years peak, but well above typical levels. More homes keep coming on the market as the banks slowly unload their inventory of unsold properties.
10.Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million over the next 40 years. That means that many new households may be looking for homes. And finally, a lot of the glut: simply wont matter: Unless you live there, the glut wont have any long-term impact on housing supply in your town.
