Friday, January 27, 2012

Is Now a Good Time to Buy?

Is now a good time to buy a home? Do you know how many times I get asked this question a day?? Lots of time. It is such a confusing time for so many in this economy. So, how do I answer this? Yes! If you are willing and able to get into the market then YES. Again, my opinion but let's examine the facts. Rates and prices are low...for now anyway. The other question, I get a lot is well I don't want to buy anything if I can't make money on it. I don't want to lose any money. How do I answer this? I can't guarantee you that you won't lose or gain and if I could well...let's just say I would probably be living on an island somewhere if I did have a crystal ball. If you are looking for a primary home then you need to look at it as a "nest" and not a "nest egg". Think of all the benefits you get of buying a home. First, you have tax write offs. Second, as one of my clients said to me years ago, "I am now putting money into my bank versus my landlords".

Let's also consider what is happening out there now. Just today, The Boston Globe, stated that Boston ranks 5th in highest rents, after New York city, San Francisco,  Westchester County (NY) and Fairfield County (CT), that is some pretty nice company Beantown is keeping. So, this is fabulous news if you are a landlord and not so great news if you are a tenant. So, what happened? How did we get here? For starters, many people are afraid to buy because they are fearful of prices eroding further. Others are reluctant tenants meaning they would rather own than rent but do to circumstance they can't. What are these circumstances? Some of these people chose to short sale their home or had their home foreclosed upon because of lack of help from banks and lenders (but let's not focus on this aspect...that is a story for another day). So, these people are in a situation where they may have the means to buy but can't because no one will give them a mortgage for another 3 years or so. OK, who else is renting? Empty nesters. These people are selling their homes in the burbs and many are making a profit but they don't want to own until they get a feel for the city and where they want to live. This is a smart move on their part but can be a costly one as well. Who else? Students and young adults just out of school. Again...renting right now is expensive. Supply and demand...economics 101.

OK, so back to the original now a good time to buy. Again, my opinion,yes, if you are fortunate to be in a position to do so then do it. The benefits by far outweigh any negatives. Owning a home now is so much less expensive than paying rent. So, it may be time for you to get off the fence but buy smart.

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