Doing Business by Referral Helping You Meet Your Real Estate Goals
What's Happening Now?
The Obama administration has pushed for a new legislation that has many people asking, "How will this help me-or will it?" and for now the answer is we won't know for sure until next month. As I underdstand it, the upshot is that if your home is worth less than when you bought it, your credit is good, you have been making your payments religiously and you are still employed then this program may work for you. It doesn't become available until 1 December so until then no one really knows how this is going to work (or if it will). Based upon the success of the other government programs, how much they cost and how few they helped, color me skeptical until we see it in action.
It is still cheaper in many markets to buy than to rent! Interest rates will be held artificially low by the fed through 2013. The hope is to rally the market so it is still an excellent time to buy! Once the cap comes off, inflation will spike and the amount of money you will be able to borrow will decrease as the interest portion of your payment increases. Even with this cap in place we are starting to see price increases at the supermarket, drug store, lumber yard and gas pump for other goods we and services we use regularly. If you remember the Carter years, this will seem all too familiar to you. If you are considering your first home, an investment property or a vacation getaway, NOW is a great time to act.
Concerned about selling or moving up in this market? While favoring Buyers, the key to selling quickly is pricing the home correctly. Many Sellers are disappointed that their home has lost much of its value in the last few years. The reality is that loss (or gain for that matter) isn't realized until a transaction occurs. It is true that while you may not receive the price for your home you might have in 2006, the home you purchase will realize a lower price as well. This will benefit your payments and your tax baseas well! If there is anything here you don't understand and would like clarification on I'll be happy to help, please give me a call or send me an email and we can work it out.
