As the end of the year rolls around, we’re all setting subconscious goals for 2010. While the usual goals consist of losing weight, budgeting better, and getting finances in line – this year one more item should be added to your list. Here are 5 great reasons why you should buy a home in 2010 – even if you already own a home.
1. First-time home buyer tax credit. This is no longer just for first-time buyers; existing homeowners also qualify for up to $6,500 on a new home if they’ve lived in their current home for 5 years or more. First-time buyers still qualify for up to $8,000. This has been extended to April 30th, 2010, so start looking for a new home!
2. High inventory of homes. There is no better time to buy than now because never again will you have such a large selection of available homes everywhere. You can literally pick not only the city you want to live in, but also down to the streets you want to be close to.
3. Low cost of homes. What could make this more idea? Not only are many homes readily available, they’re also about half price in most areas. Homes that were valued at $160,000 just two years ago are now down to $75,000, buy your dream home now before property values rise with the flood of first-time buyers.
4. Low mortgage rates. Interest rates have not been this low for over a decade, so buying a home now can save you thousands just on the rate alone. Already in your dream home? Look into refinancing to take advantage of this opportunity.
5. Capital gains, building equity, and tax deductions. Buying a home now is truly an investment – more so than ever before. Why? Because homes are cheap, and every investor knows the “buy low sell high” phrase. If you buy a home now and just pay the minimum mortgage payments, you’re still building equity that renting wouldn’t allow.
Your home is also appreciating without your help, and in 10 years – it’s naturally going to be worth more than it is now, so you can sell it and reap the gains. Lastly, the tax deductions that come from home improvements, and just owning a home is pretty helpful – especially if you’re just going to spend the same amount for rent anyways.
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