Smyrna Vinings First-time Homebuyers
posted in Smyrna Vinings Real Estate |Welcome back!
It’s been two weeks since President Obama signed the law extending and expanding the first-time homebuyer tax credit for up to $8,000. Clearly the initial tax credit had a huge impact on Smyrna Vinings homes sales this month. If you’re a first-time homebuyer, here are some thoughts when considering your first purchase.
1. Smyrna Vinings home prices are still very attractive and represent an excellent buying opportunity. Many industry experts feel like we’ve reached the bottom of the market and don’t foresee any significant movement downward on prices. So are great home prices enough to make a move?
2. You’re renting and every month you are paying a mortgage payment and building equity in the property. Except it’s not your property. Your monthly rental payment is paying the landlord’s mortgage payment and building equity for them. If you feel like you’ve been throwing your money away, you may have a pretty firm grasp on reality.
3. Interest rates – we won’t be seeing rates like these much longer. I’ve had numerous clients buy their first home this year and were able to lock in rates below 5%. Economists predict that 30-year home mortgage rates could easily hit 6% this year.
So what?
Well a 1% rate increase would mean an additional $45,000 in interest expense you would pay over the life of the loan (based on a 30-year $200,000 loan). So you can buy now and pocket an additional $45 grand or wait and spend it. Personally, I think you could throw one heck of a house-warming party for $45K or maybe save it and invest and it will go a long ways towards your retirement nest egg.
4. $8,000. Hmmm…. I’ve talked to many people who still weren’t clear on what this first-time homebuyer tax credit really means. To put it simply, it means you’ll be able to get a check back from the government for $8,000. This is not a loan. Use it to furnish your new home, make updates, save it for a rainy day. It’s up to you. Once you purchase your home, file for the tax credit and in about 30 days expect to receive a check. Enough said.
So while any one benefit is not enough to take the plunge into homeownership, you must realize that the trifecta of discounted home prices, phenomenally low interest rates and $8,000, makes a compelling reason why now is the time to take advantage of this opportunity to purchase your new Smyrna Vinings home.
Contact your local Keller Williams Realty Cityside real estate agent to assist you in your move.
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