Wednesday, March 21, 2012

A Fresh Look at Why Now is a Great Time to Buy a North Shore Home

As a North Shore Real Estate agent, I often get questions about the current state of the national housing market, and if now is really a good time to buy a North Shore home.  In keeping very much in the loop of what’s happening in the national housing market, as well as the North Shore Real Estate market; I can attest that now may be one of the best times to buy a North Shore home!
Recently, Capital Economics came out with an article noting that 2012 could very well be the end of the housing crisis.  The reason being that lenders are loosening their credit requirements, allowing more home buyers to qualify for home loans.  Because of the number of homes currently on the real estate market, more buyers equates more activity on the market, resulting in more homes being sold!  
In their study, Capital Economics shows that banks are lending up to 3.5 times borrower earnings, which is up from 3.2 times borrower earnings at the low of the housing crisis.  The loan-to-value (LTV) ratios are also being loosened by banks which, according to Capital Economics is, “the clearest sign yet of an improvement in mortgage credit conditions.”  If you’ve been turned down for a home loan within the past few years; now is a great time to try again!
In fact, loosening credit requirements are not the only reason why now is an ideal time to buy a North Shore home.  Below are just a few of the additional reasons, as pointed out by Quicken Loans, that you’ll want to seriously consider buying a North Shore home this spring!  
Appreciation- Buying a North Shore home now (at the current rates) can almost ensure your home’s appreciation in the future.  Mortgage rates are near historic lows and home prices are the lowest the nation has seen in 10 years!  If you hold on to the home until after the market improves, this can result in a significant return on investment!
Property Tax Deductions- For income tax purposes, real estate property taxes for a vacation home and first home are fully deductible.  The IRS (Publication 530) provides detailed tax information on and answers questions on what deductions for which home owners are eligible. 
Preferential Tax Treatment- If you own your home for over a year and receive more profit than the allowable exclusion after the sale of your home, the profit will be considered a capital asset, which are given preferential tax treatment. 
Equity Building- There are many factors that play into the final decision of which mortgage loan works best for you such as credit qualification, loan flexibility and annual percentage rate (APR).  However, there’s a new trend towards equity building among today’s buyers which means paying more on a loan each month in order to decrease the principle balance more quickly.  This trend, called equity building, allows borrowers to:

- Pay off the principle balance faster
- Lock in record low interest rates
- Shorten the length of their home loan
- Own their home faster
- Pay substantially less mortgage interest
Pride- This aspect is still key when it comes to the benefits of owning your own home.  Going through the home buying process, building value into your home and having a place to call your own is still a thriving portion of the American dream. 
If buying a North Shore home is something you’ve been considering, I would encourage you to move forward in the home buying process!  While it can seem like an overwhelming process, having an experienced North Shore Real Estate agent by your side each step of the way can ensure a smooth and efficient home buying experience.
I would love the opportunity to meet with you and discuss any questions you have about buying a North Shore home!  There are a number of beautiful homes currently on the North Shore Real Estate market that are ideally priced, so you’re sure to find a home that fits your needs, budget and lifestyle.
Feel free to contact me today to get started!

Janie Bress
Your North Shore Real Estate Expert

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