Why 2009 is the best time in 5 years to Purchase Real Estate

27 Feb
February 27, 2009

So, you ask, why now? What makes 2009 different than 2008? What has changed? Why should I invest in a home?

  1. Interest rates are at ALL TIME lows. NEVER have we seen 30 year fixed mortgages obtainable in the low 4% range. With our without continued government assistance, these are truly remarkable interest rates.
  2. Lenders are protecting buyers. No longer are lenders relying on the borrower to tell them what they can afford. Lenders are qualifying  buyers based on facts, and putting them into mortgages they can afford, now and for the future. If you are qualified, we have loans and money available.
  3. As David Bach (Noted financial guru and author of multiple books on creating personal wealth) states, “Homeownership works over the long term.” Housing and Real Estate, much like other investments, is cyclical. We are in the trough of our Real Estate cycle and have begun to climb up out of our downturn.
  4. Another David Bach truism: “Real Estate is a great inflation hedge.” Daily, the Federal Government remains focused on flooding our financial economy with liquidity and bail out programs. Sooner or later, one (or all) of these programs will work, and liquidity will cause inflation!! Maybe not today, or next year. But, if you buy real estate for the long term (4-7 years), there will be many astute buyers gloating that they “bought back in 2009!”.
  5. It is a buyers market, though well priced homes are selling — many with multiple offers.  Today is a great time for first time homebuyers!
  6.  With the large decrease in home values, many homes can be purchased for what most renters pay in rent. Today is a great time for first time homebuyers! (hmmm, did I mention that already?)

(Commentary provided by Carl Mazzan with Choice Mortgage, an affiliate of Wells Fargo Home Mortgage. To contact Carl about information specific to your personal situation, call 703-761-1190)

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