Okay, I know you’ve noticed that Albuquerque real estate prices have softened considerably here in the Land of Enchantment in the last 6-12 months. Yet, many people who are able to take advantage of low home prices are still putting off buying.
Why? Many are simply feeling uneasy with the economy. Some are “waiting for the bottom”.
But why is now a great time to move forward? Here are just a few reasons:
The Mystical Art of Timing “The Bottom”.
Now is a great time to buy, simply because many other people are not, which is the exact condition that creates the strong “buyer’s market”. The current market offers softer prices, increased opportunity to procure that home or investment property you’ve always wanted, favorable lending conditions, a large quantity of homes to choose from.. Consider that the moment when we start to hear the media saying rosier happier things that will provide the warm fuzzy we may feel we are missing today, by then “The Bottom” has probably already passed us by!
Our Local News is NOT the same as the national picture.
Now I’m not saying we are not part of the good ole’ US of A (although even with Governor Richardson’s attempts to put us on the map, many American’s still mistakenly think New Mexico is on the other side of the border fence), but we’ve had a fair go of it here during this rocky ride of late. Our foreclosure rates are relatively low, mostly because New Mexico’s local banks and credit unions exercised conservative policies while many other regions did not.
Mortgages are not only available, but lenders are fighting over your business!
Everyone thinks that mortgages have “dried up”, and that it’s impossible to get a loan. But that’s not true! Mortgages are available, and in fact, many lenders are bending over backwards to get and keep clients who can qualify by reducing rates, eliminating fees, and negotiating terms that 2 years ago they didn’t have to (just like sellers!). Now is the time to save $$ on a mortgage!
AND interest rates continue to drop!
Money is extremely cheap right now AND lenders are jockeying for our business. A combination for Ka-ching!
The First-time Home Buyer Tax Credit worth up to $7,500.
It was passed earlier this year and targets any individual or household that hasn’t owned a home for at least three years. Taxpayers can take the credit on their 2008 tax return if they buy their house in 2008. More Ka-ching!
You may want to retire someday.
Ya think? I don’t know about you, but at some point I’d like to be able to kick back, slow down and chill out, preferably on a beach somewhere with a toddy in one hand, no email access for miles and not have to worry about how I’m going to pay my mortgage that month. Or worse yet, my rent payment. Talk to anyone whose home is paid for (try your grandparents) and ask 1 simple question: Knowing what you know now, would you still have bought your home then if the market was depressed? Anyone who bought in the 80s’ probably bought in a depressed market and today, their house could be close to completely paid off!
Increase your Net Worth
If history tells us anything at all, it’s that any real estate you buy right now will be worth at least twice as much in the next 12 years. Just research the median price in the U.S. over the last 100 years and you’ll see what I’m talking about. Hold on to that house for 24 years and it will be worth 4 times what you pay today. And yes, all this appreciation, despite our current market conditions!
Ease the jitters.
Many folks have seen their 401(k)s drop to alarming lows. Nothing like going through that once or twice to remind you that stock is not even paper money, it’s hypothetical money. Aha… stock only becomes money when you SELL it. Now, hold on there pawdnuh, I’m not recommending you cash out all of your stock and get into real estate. In fact, now could be a positively STELLAR time to buy stock if you don’t already have some. My personal plan has been to sell a small portion of my stock to keep in cash for a down payment in case I find a super investment property. But the main body of my portfolio will remain in stocks/mutual funds and will be reallocated to obtain positions in all the blue chips that recently dropped through the basement floor, but which I know will rebound with time. The key difference to consider is that real estate is not a hypothetical investment, it is a tangible investment. You can actually live in it or rent it. Now, I could probably keep a few raindrops off my head with my Microsoft stock certificates..
The Country Needs You To.
You may not realize it, but you taking action does make a difference. Now I’m not saying to go out and bite off more than you can chew, because that’s what got us in this mess in the first place. But rather, buy a home or investment property within your means and we’ll all be glad you did.
