Are you tracking the real estate market and wondering when would be the best time to invest in a property? Are you looking at the slightest signs of recovery in the housing market and wondering whether to put your foot forward?
Well, it may be true that prices of properties are low and they are no longer free-falling. Mortgage rates are also relatively low and you may be tempted to utilize the tax credit offered by the government in 2009 to help new buyers with their property purchase. Now that this tax credit has been extended to April 30 2010 and includes current homeowners as well, the deal may seem nothing but sweet.
Despite all this, purchasing a property right now may or may not be the smart thing to do. It is expected that prices of homes in some areas in the US may decrease further. If you already own a property, it may take you longer to sell it a good price due to the low prices. So, while it may still be safe to buy a property now, the market is still a difficult one.
If you currently own a home and signed a contract to be eligible for tax credit can expect a reduction on 10% of the purchase price of the property, with a ceiling of $6500. First time owners or buyers of a property can receive almost up to $8000 in reduction. However, if you haven’t already sourced for a house, you may be pressed for time in order to meet the April 30 deadline.
Real estate agents claim that buyers generally spend about 12 weeks looking for a home before deciding on one. Also, in order to qualify for the tax credit, your total household income should be below $2250000 if married and below $125000 for singles. Repeat buyers should have been in the house for at least 5 out of 8 years to qualify for the tax credit. So, if you are keen on tapping on this tax credit, act now.
Should you decide to wait to see how the market shapes up, you may face the risk of having to deal with a rise in mortgage rates. However, if housing prices are dropping where you live, you may end up with a lower price by waiting. Do a check online or with real estate agents to find out where the market is headed. If you find that mortgages are on the increase, then recovery is still a distant sight.