valentinosdcpulse

Owning a home is an American Dream & an ideal that will never change. Do you find yourself daydreaming about buying your first home or a new home? It can seem difficult to decide; you may be looking at the economy and housing market and wondering whether it's the best to buy a home or if you should just continue to wait or rent until the situation resolves itself.

If this sounds like you, then there are some things you should consider. Right now, we are looking at a vast number of unprecedented opportunities in today's housing market. Here are 5 reasons that make buying a new home today one of the smartest purchases you may ever make. 

1- Home Ownership Has Tax Advantages and Builds Wealth

 One reason that buying a home today is smart is that homeownership has many positive tax implications. The three most important sources of tax savings for home owners are the: 

• deductions for mortgage interest
• deductions for real estate taxes
• capital gain exclusion for the sale of a principal residence

Buying a home also builds wealth in 2 ways:

First, you build equity by paying down your mortgage. A certain percentage of each mortgage payment goes towards a reduction in the total amount owed. Typically, payments in the first few years of the mortgage are primarily applied to interest on the loans. As time passes, however, more and more of each payment is applied to the outstanding loan amount. Before you know it, the $300,000 loan is down to $50,000 and you've gained $250,000 in wealth.

Appreciation is the second wealth building advantage to home ownership. Each year, the value of your home will increase or decrease slightly based on market prices. Over time, real estate has usually appreciated in value despite the experience of recent years.

2- The Housing Market is Currently a Buyers Market

Supply and demand will always drive the market and right now, buyers are currently in the driver's seat. This puts the buyers in a better negotiating position. Sellers are more willing to offer incentives like accepting a lower price, picking up the closing costs, throwing in new appliances or other concessions to close the deal. Rachel Valentino, an expert in the DC market, is available to discuss or show you the many opportunities available for buyers within the DC area.

3- Mortgage Rates Are At All-Time Lows

Mortgage rates are historically low: We are seeing interest rates not seen since the 1950's.

As of Friday, August 14th, 2009, mortgage rates are once again below 5%* on the popular 30-year fixed rate mortgage, a rate not seen in decades. This is substantially lower than the 15% interest rates of the 1980's.

And it's not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments for a long time to come. So for many, this represents an opportunity, possibly a last chance to lock in a fixed 30 year mortgage near or under 5%* by acting today.

*Please note that low rates don't mean lenders are handing out mortgages easily. You'll still need good credit, a substantial down payment and a willingness to document your income in order to qualify for those great rates, if you can qualify at all.

4- First Time Home Buyers Can Still Take Advantage of the New Home Buyer Tax Credit

The recently approved $787 billion economic stimulus plan has a home buyer tax credit of up to $8,000 for home buyers who haven't owned a home in at least three years and meet income qualifications. This is an unprecedented Window of Opportunity for those who qualify!

Time is of the essence to take advantage of this once-in-a-lifetime opportunity. Only homes purchased before December 1, 2009 are eligible for the first time home buyer tax credit. It is being suggested that the paperwork be begun by mid October at the lasest in order to make the deadlines. Contact Rachel Valentino today for more details on this exciting opportunity.

And last but maybe most importantly:

5- It's A Place to Call ‘Home' and There's No Place Like Home

Just like building wealth, buying a home should not be looked at only in monetary values. Indeed it is a stepping stone to building wealth and financial security. But really, it is much more than a financial investment. It is an investment in you, your family and your future. It provides a great sense of pride and satisfaction to have your very own place to call home. It shows that you believe not only in yourself, your community, but this nation as a whole.

Owning a home really is the American Dream and there may never be a better time to buy than today!Rachel Valentino is the number one expert in the DC area for finding real estate you can call home. She truly values people and really wants to help find the perfect house or condo that you can call ‘home sweet home'.  Contact Her Today.