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Archive for August, 2010

9 reasons you should buy your first home now.

It’s a scary thing, buying your first home. You wonder if you’re doing the right thing. It’s funny that first time home buyers had little chance of buying a home at the peak of the market. And now that homes are affordable, they fear jumping in. Here are some things to consider that could help you decide if the time is right for you.

1. First-time buyers aren’t investors. They’re buying to own a home for themselves to live in and enjoy. If the home falls in market value a little, so what? They aren’t planning to sell.
2. Money paid for rent buys a house for someone else to own.
3. Rents do rise with supply and demand.
4. Homes in most areas are now so inexpensive that first-time buyers may be able to make their payments and set aside a few dollars for maintenance for less than their current rent.
5. Interest rates are still low, making inexpensive homes even more affordable.
6. With interest rates so low, a few extra dollars per month on a 30-year mortgage could mean a first-time buyer could own the house free and clear within 15-20 years.
7. Hesitation could cost big dollars. Just a 1% rise in interest rates will add several hundred dollars per year to even a moderately-priced home. And interest rates are expected to rise.
8. This tide will turn, and homes will begin appreciating in value. That trend has already begun in some markets and will begin in others as the foreclosures and short sales are sold.
9. Over time, first-time buyers will be earning more while their house payment will remain stable.

Contact me if you have questions about how to get started buying your first home!

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