Anytime you can buy the house you can afford and stop paying rent is the right time to buy and with prices coming back down to realistic prices once again, it may be your time. We are a society of home owners. Our tax laws are favorable to home ownership and I think the American Dream still exists and today is the perfect time to find your piece of that dream.
Is it time for you to kiss your landlord goodbye?
The high prices were a bubble and only a bubble. All markets have them. Remember the tech bubble? That one cost me dearly. Microsoft was $120 per share and was going straight up. Well, I stopped that silliness by buying high and selling low. I bought into the high tech stock market and the market immediately said “whoops, if Clyde is in we are too high”. The same thing has happened in the housing bubble and the one thing all experts are agreeing on is, the party is over. If you bought low and sold high, congratulations. If you bought at the top the Short Sale may be your only way out but remember, the short sale is not a get out of jail free card. It comes with some heavy side effects. See my article on Short Sales if you think it is for you. If you can get out of the property without a short sale and just lose some money that may be a better course to take. Either way, talk with experts and I am not talking about Joe at the local bar. You should talk to your Realtor and CPA. Remember, if you sell that over priced property at its true value you can replace it with a new property at true value and you may find you have just as much house at a smaller cost. The housing crisis is over according to the Wall Street Journal and maybe they are right. I hope so. The housing bubble started to pop in 2005 when prices were at their peak. Since then prices have dropped drastically around the country. Interest rates are lower and homes are becoming affordable again. Short sales may be bad for sellers but they can be great for buyers. I am making a loan on a house with a $190,000 mortgage that is being sold for $139,000. The house is a nice 3 bedroom 2 bath starter home and even has a pool. It never on its best day was worth $190,000 but it is a great buy at $139,000. The taxes and insurance will be lower with a value of $139,000 instead of $190,000 which also helps make this an affordable home. We are looking at a total package of; sales price $139,000 with 3% down payment and an FHA mortgage at 6% for a 30 year fixed. This is an affordable home and is located in St. Petersburg, FL which historically is not considered as the cheap seats to live. This young family has found their American Dream and you can be next. Clyde Rowland