In many areas around the country people have been sitting on the sidelines think that things are going to go lower or rates are going to go lower or many other reasons that has postponed their purchase. But the fact is there has never at anytime in history has there been the perfect storm to purchase real estate. It does not matter if it's a first home, replacement home or commercial real estate the numbers are all in alignment with the stars. With home values from the peak in 2006 some homes have fallen as much as 60% of the value at the peak.
The other factor that is taking place right now is that there is an inventory of foreclosed homes being held by the banks and mortgage companies they have not even come on the market. These homes when they come on the market with be sold at as much as 30-50% of the value.
The First fact that makes it the best time!
Over the years interest rates have gone up and down there has been additional cost associated with making a purchase and the buyer had to pay those additional cost. Since the collapse of the mortgage and real estate markets since 2007 the changes that have been put in place have worked to make easier for people to save money when buying. The fact as to interest rates as of this writing interest rates are lower today than they were in 1956, at that time the rate was 6%. There were not any options at that time like there are today.
We did not have 15 year or 20 year payment terms, we also did not have adjustable rates and you could not get the seller to assist you with buying down the rate like you cab today. Since today there are so many options available to a person who wants to purchase you can really set down a detailed plan of financing that will fit into your budget. Today you can receive a 30 year fixed rate loan as low as 4.50% which means that for every hundred thousand of mortgage amount you would only pay $450.00 per month, plus taxes and insurance. Now think about this that is $450.00 per month for $100,000 home plus you would receive a tax credit for the interest paid over the cost of a year.
Now the plan gets better for the Buyer.
With the decrease in real estate values over the last three to four years since the markets started to collapse prices of homes have become more affordable to many who could not buy a few years ago. Think about the prices just four years ago in many areas homes were selling for $250,000 are now selling those same areas for $70,000 to $100,000 and with the rates as low as they are today. You are getting a home that once would have cost a person $1,500 per month and now it cost $400.00. Do you think this makes it the perfect storm for buying real estate when prices are down and rates are at the lowest all at the same time? Of course this is why this has never be available before in history there are more choices to choose from when it comes to finding a home or investment and the cost to finance it is lower than ever before all at the same time.
For the Buyer there is a third thing that is currently in place that has never been available before in history. For the first time homebuyer today and until April 30, 2010, people who buy their first home will able to still receive up to $8,000 tax credit directly from the government. In addition; which has been added to the stimulus for the person who wants to move up they will receive up to $6,500 for making a new home purchase.
So add all these issues together from lower prices to lowest interest rates in history and money back from the government for buying this makes this the best time in history ever to buy a home. So get out there and start finding that home now before the storm clears and the rates go up which they will most likely go up with the next six months and the tax credit disappears. Don't wait make it happen before April 30, 2010! Bringing all of the above issues together lower prices, lower interest more terms, more selections and the availability to purchase homes with as little as 3% down that can be 100% gifted and in some areas those same homes that are not 50% less can be purchased and finance with a 100% mortgage at rates lower than 1956. This is truly the perfect storm for a buyer who has not fallen from the real estate bubble and is now able to buy that home for less down and with payments lower then rental payments for landlords who purchased in the boom years.
Tim Robbins,Sr I have spent the better part of 20 years of my career working exclusively for Home Buyers. In fact in New Jersey I was one of the first Exclusive Buyers Broker in the State. My main goal is to provide the best education resources available and to always place my clients interest first and foremost. My website is designed to give you all the available information which you can review either in print or video by visiting [http://NJbuyersonestop.com] the you will resources you may need for a good education when purchasing Real Estate. Also contact me Toll free at 800-610-3599 For 100% Representation 100% of the time Hiring the Agents Buyers Broker and have the best you can get.
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