10 Reasons Why It is A Good Time to Buy a Home NOW!!

SEPTEMBER 16, 2010, 7:13 A.M. ET
By Brett Arends
ENOUGH WITH THE DOOM AND GLOOM ABOUT HOMEOWNERSHIP! Brett Arends explains why owning a home is a good thing.

So here are 10 reasons why it's good to buy a home.

1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.

2. Mortgages are cheap. These are the lowest rates on record. As recently as two years ago they were about 6.3%. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refinance.

3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent.

5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.

6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out.

73% of all homes in Clark County are down at leat 50%. And rents have held up well because the homeowners that are short-selling or vacating homes due to foreclosure must begin renting.

Choose the property wisely and you can get steady income and a good chance of solid appreciation over the next ten years. Seek out places that were growing before the recession and have something compelling to offer that will drive future growth. If you need a mortgage, make sure your monthly income will be enough to cover you loan payments plus a 20% cushion to cover repairs, vacancies and property management.

Real Estate is the only investment that gives you: Cash Flow. Appreciation, Depreciation and Equity Build Up.

Call for more information (702) 236-6266 or www.sharebuildersinc.com

The Real Estate Market is HOT

Although the news may sound like the world is coming to end. The real estate market and the individuals who are in the "know" are CASHING IN!! This is the best time to purchase whether a owner/occupant or as a real estate investor. If you are wanting to get into the market as an investor here are a few rules to live by:


RULES TO INVESTING IN REAL ESTATE

1. Have a business plan….. Why real estate? What do you want to accomplish investing in real estate?

2. Have a criteria and stick to it.

3. Do your research on the properties.

4. Always put your investment property in an LLC. Get legal advice.

5. Have a good CPA and Attorney

6. Always have CASH FLOW. Without the cash you will not be able to make it work.

7. Do not purchase investment property with large yards or swimming pools. Costly to maintain.

8. Never rent to FAMILY or FRIENDS. This is a business not a charity.

9. If you are purchasing property with a loan, ALWAYS get a fixed interest rate and on a 15, 20 or 30 year loan program.

10. ROI (return on investment) less than 60 months. This will depend on your own criteria and properties Performa

Visit my website www.sharebuildersinc.com or call (702) 236-6266