Buying right is the first step to profit and success but after the bubble crisis, some potential buyers have been afraid to act. If you have been sitting on the side-line waiting for the next buying opportunity, now might be the time to buy.
Interest rates remain low. Don’t just think about the price of the house alone. If you purchase a median-priced home, every ½ point increase in interest results in an extra $1,000 annually for as long as you hold the loan.
Inflation adjusted prices are lower than ever. Nominal home prices have dropped 5, 10 or even as much as 25% from previous highs in most areas. When adjusted for inflation the savings are even greater.
Banking regulations are tightening. Recent economic indicators lead many to believe banks will tighten lending requirements by requiring larger down payments, stricter qualification guidelines and other restrictions. Even if interest rates remain low, it could become much more difficult to qualify for a mortgage in the future.
Rising rents. Rental rates have been increasing with rate hikes expected for the next several years. During tough economic times, the ability to lock in a price and control costs is important to maintaining a working budget.
Fabulous foreclosures and incentives. Special programs at the state, local and federal level are able to assist investors and homeowners in purchasing foreclosures, short sales, REOs, and other property through special programs and incentive packages.