The Pennsylvania Association of Realtors wrote “The Journal came up with ten reasons why it’s good to buy a home now or in the near future. Let’s look at a few of the arguments:
Now is a good time to make a deal. “This is a buyer’s market.” No one can predict the future (at least not well enough to predict the turning points of markets) but the argument here is that in the long run, it is not necessary to buy at the very bottom of the market. Note, however, that with so many houses available and a weak economy, prices are not likely to rise for some time. Thus, the deal should focus on housing as a consumption decision for years to come.
Mortgage money is cheap. Yes, it is, since inflation is nowhere in sight (not yet at least). Be reassured that the option to repay at fixed rates for the life of your loan is probably cheaper now than ever (this option is built into your fixed-rate mortgage rate). Inevitably mortgage rates will rise in the future, although it is unclear when — but whenever it is, you will be covered.
An owner is likely to treat a house differently than a tenant (or even a landlord). Not only does homeownership give owners a bigger bundle of rights compared with tenancies, but owners are also likely to treat the asset as their own.
Amortizing a fixed-rate mortgage enables wealth to be accumulated by the household sector, even if it is a slow process. This “forced savings” enabled generations of homeowners to build equity with loan repayments. If one is able to service the debt with household income, over time these repayments will mean accumulated household wealth. Note, however, this is different than saying that equity build-up is the reason to buy. Since the amortization portion of the payment is the owner’s own money, this is merely a savings plan.
Buying a home will always be one of the most important and biggest decisions you will make in your lifetime. These points listed by the Pennsylvania Association of Realtors are the main reasons why it is a good time to buy a home.
If you have any questions, please don’t hesitate to contact The Barb Bottitta Team of Lehigh Valley Home Experts. We are happy to help you with any and all of your real estate needs!
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