The Ideal Time to Buy

If you have been mulling over the idea of buying a house, you might want to stop mulling and start looking. We have discussed this in several past blog articles, and I hope I am preaching to the converted.

Now is the ideal time to buy a house. I am not mincing words because truly, there is no better time. Why am I so firm about this? For three reasons. One, the interest rate on mortgages is at a historic low. It’s been more than thirty years since we’ve seen interest rates this low. Obviously, this means that your monthly mortgage payments will be less as well, appreciably so. A house mortgage is good debt because a house is an investment which will appreciate over time. Granted, there times like these as well, but for the most part, houses gain value.

Two, the goverment is offering a first-time buyer tax credit worth up to $7.500 if you buy a house by July 1, 2009. If you are part of a married couple and buying a house together, you can get up to $15,000 in tax credit. The credit acts as a zero-interest loan as you have to repay the money over the years, but there is no interest. If you bought a new home after April 9, 2008, you also will want to look into this tax credit. The government is ready to place this money into your hands if you are ready to buy your first new home. Here is a website that comprehensively laws out the tax credit program.

Three, house prices are lower than they have been in the past several years. This is only logical in difficult economic times, and these are difficult straits, indeed. People are worried about their personal economy and don’t necessarily want to take risks on a big investment–even if it will benefit them in the end.

I feel so strongly about this that I am going to keep saying it. If you have any thoughts of buying a house within the next year or two, then time is really of the essence. This trifecta of perfect reasons to buy a house will not last forever.  Now is the time to act.  If you or anyone you know is thinking of buying a house, call me at (952) 915-2252 or e-mail me at  Steven@StevenHong.com so I can talk about it with you.

First-Time Home Buyer Tax Credit

It’s a great time to buy a Minneapolis house.  I know, I’ve said this several times before, but I really want to emphasize the point.  Interest rates are at an all-time low, and even better, the government wants to help first-time home buyers with a tax credit.  Here’s the deal.

If you have bought a new home on or after April 9, 2008, or are thinking of buying a new one, you have until July 1, 2009 to make your purchase if you want to qualify for the tax credit.  A first-time homebuyer is defined as someone who has not purchased a primary residential home in the past three years.  If you are married and are applying for the tax credit, then the ownership histories of both spouses are taken into account. 

You apply for the credit when you file your taxes, and the maximum credit for an individual is $7,500–$15,000 for a couple.  First, the money pays off your taxes, then you get, in hand, the remainder of the money.  Most people pay off their taxes, so if that’s you, you get the full amount.

You get the money in hand now, but it will have to be repaid to the government over a period of years.  Yes, it acts like a 0% interest-loan, but it’s a tax credit because it’s affixed to your taxes.  In a nutshell, you get 10% of the purchase price with a cap at $7,500 for individuals and $15,000 for married couples. 

This is just the bare-bones basics.  If you have questions or want to read more in depth, visit the website, http://www.federalhousingtaxcredit.com, for a more comprehensive view of the program.  Take a look and see if it’s time to buy your first home!

Are You Ready to Buy a Home?

Factors to Consider Before Purchasing a Minneapolis Home

There are many factors in determining where or when you buy your first home, but first ask yourself these questions:

Do you have a steady source of income (usually a job)?

Have you been employed on a regular basis for the last 2-3 years?

Is your current income reliable?

Do you have a good record of paying your bills on time?

Do you have few outstanding long-term debts, like car payments?

Do you have money saved up for a down payment?

Do you have the ability to pay a mortgage every month, along with taxes, insurance, and utilities?

If you can answer “YES” to these questions, you are probably ready to buy your own home.

Single Women and Home Buying in Minneapolis

In the 1970s, women were regularly denied loans for houses and even for their own credit cards.  It was assumed that their husbands would be the main breadwinners, or if they didn’t have husbands, they didn’t have enough money for things like buying houses.  Now, some thirty-plus years later, single women are buying houses in droves.  In fact, single women now account for around 20% of all homebuyers.  In other words, many women are not waiting to get married before buying a home.

 

There are several reasons for this.   More women than ever  are delaying marriage; the divorce rate is high which means many suddenly-single women need housing; more women are graduating from college and making better money earlier.  These are just a few reasons why more single women are buying homes these days.  Read more