Is it Time to Buy??

By Sandy Flores

Special to Excelsior

In the 20 years experience that I have, I do not seem to have considered that there has been a better time to buy a house now. Consider some important facts, such as fixed rate mortgages to 30 years that are available today for less than five percent. On the other hand if you are considering a 15 year mortgage, you could still get for less than four percent. They are extraordinarily low rates.

In addition to the excellent interest rates, we added the property prices reflecting a decrease of 30 percent in average values ​​compared to a few years ago. There is no reason why you should not buy a house now and take advantage of super-low prices, mortgage interest rates historically low and a substantial inventory of homes on the market.

For example, there are a surprising number of short sale properties (Short Sales) and foreclosed (REO – HUD). To find sure to consider the help of a specialist who is knowledgeable about the process of such sales, as these processes are very complex negotiations with cycles in many of these cases difficult and frustrating, and could take longer than planned to materialize the approval and closing the sale.

Rental demand in recent years has increased due to the high number of foreclosures and increased requests for rent. This situation has led to prices of rental housing have also increased significantly.

Given these factors, it is expected that prices of rents continue possibly with an average increase of about five percent over the next year.

In a recent analysis presented at www.Trulia.com , the average ratio of sales prices to rental prices means that buying a home today makes more financial sense to rent a property in about 80 percent of the markets regional included in this study.

The property is also regarded as a superb tax shelter and our tax rates favor homeowners. The interest payments on your mortgage is deductible on your tax return. Interest is the largest component of your mortgage payment. Publication 530 of the Internal Revenue Service (IRS for its acronym in English) has more information about taxes for the first buyers.

While you have lived in your home for two of the last five years, you can exclude up to $ 250,000 per business or $ 500 for married people on the benefit of capital gains. There is no age restriction, and the rule “over 55” does not apply. You can exclude taxes on the capital gain in 24 months.

Get the assistance of a real estate professional to advise you in this process and select a number of houses that are within your requirements and needs as well as the neighborhood that attracts him. Consider within the neighborhood that you are looking for different school districts if you have school age children, parks, shopping centers, medical facilities, transportation, among others. Start looking at various neighborhoods and the amenities they offer, do not limit your options, explore new areas. Before submitting an offer on the property of your choice take time to read and understand the relevant contract.

Remember that all contracts have legal implications, especially when it comes to buying a house.

If you do not understand the documents you are giving to sign even after the agent’s explanation, seek help from someone you trust or hire an attorney to assist you in the process. Make sure the numbers and terms offered are written in the documents you are signing. Do not sign anything that you are not completely sure.  This definitely an excellent time and opportunity to consider buying a property with much more affordable, especially favorable terms and interest rates impressively low.

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