If you have been mulling over the idea of buying a house, you might want to stop mulling and start looking. We have discussed this in several past blog articles, and I hope I am preaching to the converted.
Now is the ideal time to buy a house. I am not mincing words because truly, there is no better time. Why am I so firm about this? For three reasons. One, the interest rate on mortgages is at a historic low. It's been more than thirty years since we've seen interest rates this low. Obviously, this means that your monthly mortgage payments will be less as well, appreciably so. A house mortgage is good debt because a house is an investment which will appreciate over time. Granted, there times like these as well, but for the most part, houses gain value.
Two, the goverment is offering a first-time buyer tax credit worth up to $7.500 if you buy a house by July 1, 2009. If you are part of a married couple and buying a house together, you can get up to $15,000 in tax credit. The credit acts as a zero-interest loan as you have to repay the money over the years, but there is no interest. If you bought a new home after April 9, 2008, you also will want to look into this tax credit. The government is ready to place this money into your hands if you are ready to buy your first new home. Here is a website that comprehensively laws out the tax credit program.
Three, house prices are lower than they have been in the past several years. This is only logical in difficult economic times, and these are difficult straits, indeed. People are worried about their personal economy and don't necessarily want to take risks on a big investment--even if it will benefit them in the end.
I feel so strongly about this that I am going to keep saying it. If you have any thoughts of buying a house within the next year or two, then time is really of the essence. This trifecta of perfect reasons to buy a house will not last forever. Now is the time to act. If you or anyone you know is thinking of buying a house, call me at (952) 915-2252 or e-mail me at Steven@StevenHong.com so I can talk about it with you.