Why it is the best time to buy a house?
Economic downturns are unfortunate yet inevitable pain points occurring in the economic history of every nation. But they are also periods of time when unique opportunities present themselves to the discerning few. Against the backdrop of mindless pessimism, it takes an astute investing mind to take a contrarian view and identify winning deals. Of course an investment decision should always be supported by careful analysis and research of the prevailing market conditions. It is in this context that the present scenario of economic gloom, presents a golden chance to invest in a house.
Economic stagnation is often preceded by periods of unrealistic “bubble” prices and easy credit in asset classes like real estate. When the downturn strikes, the chickens come home to roost, resulting in a high rate of mortgage defaults, leading to foreclosures. This represents a chance to acquire a house at or even below fair prices. Job losses and bonus cuts also mean that a lot of discretionary investments like second homes or vacation homes are also up for sale. In such times, the market is loaded in favor of the buyers and good deals are sweetened further with the additional pluses like free furnishings etc. In the anxiety to revive demand and promote asset creation, the government puts a lot of incentives in place, making the buying decision more viable. The recent Federal tax credits amounting to $8000 for first time home buyers and $6500 for move up buyers announced in the United States are classic examples of such state intervention.
Even when you decide to buy a home from a developer, the deal is always better at such times. Down payments as percentage of total outlay are kept low (sometimes 3.5% or lower) and low interest rates mean lower mortgage commitments. Efficiency and effectiveness are the new buzzwords and this means that closer attention is paid to deliver higher value per dollar. The emphasis is on economy in terms of more efficient use of space with flexible plans. Design elements are also included with a view to keep the running costs low. Green initiatives like foam insulators, CFL lighting, drip irrigation systems and solar lighting become standard specifications in the design of new homes. The aim is to design quieter, cleaner, healthier and affordable homes in order to further enhance value perceptions with respect to the dollar prices paid.
Every investment is always evaluated in terms of two parameters – regular returns on investment and appreciation thereof. Buying a house in these times scores on both counts! With rampant repossessions, the demand for rental accommodation is on the increase and that presents a ready market for your house, fetching regular returns. Also the decision to buy a house now, presents you with an opportunity to enter the realty market at rock bottom prices, from where the movement can only be upwards!
So if you have been thinking of putting down a payment for your house, go ahead and do it now for there is no time like the present!Are you looking for Homes
for Sale in Pinole CA or Homes
for Sale in El Sobrante CA,
Marco Rodriguez Team is just a call away!
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