If you have been contemplating becoming a homeowner for the first time, circle 2009 as the year that you’ll own a home. This is the perfect time for young people and other first-time home buyers to buy a house. Why? Because you have everything going your way. Here is a list of reasons why you should buy a house in 2009.
- The price of homes continue to drop. I thought they would start leveling out at the beginning of the year, but apparently there is a little more fallout to come. Some areas have seen a spike in home sales, and this is because first-time buyers are realizing that this is a great time to get a deal on a house.
- The bargaining power is in your hands. In this market, you can get the seller to pay for all of your closing costs, the appraisal, an inspection, and maybe even the outstanding property taxes.
- The government has sweetened the pot for the first-time home buyers tax credit. Here are the details:
- The tax credit is for first-time home buyers only.
- The tax credit does not have to be repaid.
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
- The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
- Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
- Interest rates are still under 6 percent!
- Banks will start lending again wiith less stringent requirements, because that’s how they make money. Banks make money by lending money, so they can’t be tight with their money for too long.
So, have I convinced you yet? Don’t go out and buy a house if you can’t afford it. That’s how we got in this economic mess in the first place. But, if you have a down payment saved, you aren’t swamped in debt, and you have a stable career, take advantage of these times to get a great house at a discounted price.
