Why Buy Today - 09/28/09


For Immediate Release
8:00A.M. PT, August 27, 2009
Fredrick J. Bond, SVP/Mortgage Division Manager
805.369.5138
fbond@heritageoaksbank.com

(San Luis Obispo,CA) - Over the past few years the fundamental reasons for owning real estate haven’t changed. In fact, today’s low rates and bargain prices make it a compelling time to look into purchasing.

Our recent period of rapidly-escalating home prices encouraged some Americans to view houses as something which they aren’t. Historically houses have been solid investments, but not spectacular ones.

Homes have reliably risen in value at a pace slightly faster than inflation. But they’re not a means for getting rich quick – at least not for the vast majority of us.

At its most basic level, a house is a place to live. The best time to buy one is when you need to move into a new home. You’ll receive tax benefits by claiming deductions on your mortgage interest and property tax payments. And you can expect to see your home’s value go up over time.

But no one can be certain about how property prices will move, so it’s risky to attempt to time the market. Think twice about purchasing if you don’t plan on staying put for at least a few years.

However, remember that if you continue renting you’ll probably see your monthly payments rising annually. And you won’t have the freedom to improve your house to fit your current needs.

LONG-TERM GOALS

Over time the steady appreciation of property allows you to build a sizable profit. And most Americans can sell their home without paying tax on that increase.

Stocks don’t offer the same advantage. In fact, many experts predict that capital gains tax rates on stocks will go up in the near future.

Paying off your mortgage can give you the freedom to retire without having any housing expenses. If you choose to move to a smaller home, you may enjoy a profit which will increase your retirement savings.

A recent lull in the real estate market is a natural reaction to a period when expectations and activity became overheated. Yet the time-tested reasons for being a homeowner remain as true as ever.

###