Did You Miss the Boat? Nope!
- Home shoppers who missed the April 30 deadline for The Home Buyer Tax Credit might have the last laugh for a variety of reasons. If done right, today’s home buyer could end up saving more than the $8,000 they could have received from the tax refund. Let me explain a couple of reasons why.
- There are now sellers that are dropping their prices because buyers are harder to find now that the credit has expired. Not only have there been these reductions in prices, but traditionally, prices start to come down in June and July anyway because of school schedules and summer travel. So, there is a double-dip effect on prices.
- Plus, in efforts to keep buyers interested, there are a lot of home sellers that are also offering promotions after the tax credit ended that, in many cases, are worth more than the credit itself. Seller paid closing costs, upgrades, and cash, just to name a few.
- Add these to the down-right low prices and that creates incredible savings for all buyers.
- Oh, yeah, then there’s this…
- Maybe you have heard, Interest rates are as low as they have ever been! (or at least as long as anyone has been tracking them.) Rates are at 4.5% on a 30 year fixed rate mortgage, (as of July 7th, 2010.) FHA 5/1 ARMs are at 3.25%!
- You could buy a $250,000 home with only 20% down and pay principal and interest of only $1,014 per month! Three months ago, when buyers were stumbling all over themselves to get in under the tax credit deadline, the rates were a full point higher. That made the monthly payment higher by $121.00. So, in a little over 5 years, that is $8,000 in savings. You add that to the prices that have dropped and take on some of those promotions sellers are offering and, boom! You are way ahead of the buyers that made it in under the deadline!
- Thanks to the low interest rates and the “Cash for Clunkers” effect that the Home Buyer’s Tax Credit has caused, I guess it is OK to miss the boat from time to time…
- Happy shopping! And SAVING!
- Investing in the real estate market has risks and is not for everyone. I am, by no means, suggesting this is for you. I am a trained professional, I do this for a living. If you would like more information regarding real estate investment, just let me know. You can also consult your accountant, attorney, Priest, Pastor, or Rabbi about the risks involved in investing. I am, however, available to answer your real estate related questions.
- Jeff Hansen
- jeffhansen@remax.net
