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Real Estate in 2010 - Is This the Perfect Buyer's Storm? |
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Written by KarenLissack
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Tuesday, 16 February 2010 |
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If you are looking for a larger home for your growing family or are interested in purchasing real estate for business purposes, you are probably thinking about making a purchase or two in the upcoming year. This brings to question whether the current economic storm is perfect for real estate investments, or not.
by KarenLissack
If you are looking for a larger home for your growing family or are interested in purchasing real estate for business purposes, you are probably thinking about making a purchase or two in the upcoming year. This brings to question whether the current economic storm is perfect for real estate investments, or not.
The year 2010 will bring about many changes in the real estate world. One of the questions you may want to think about is whether or not investing in real estate is a wise decision for you. Here are a few things to consider:
The first thing to understand is that the prices and values of homes are set to go up in the future. This means if you purchase a house cheap right now you could expect to turn it around for a nice profit in the future. This also means you can pick up property for your personal use without facing a dropping value a short while after purchase.
Our job market has not picked up yet and the foreclosure crisis continues to take homes from many American families. It is estimated that about 1 in every 4 homeowners owe more to their mortgage than their home is even worth. You can guarantee that many more homes will be hitting the foreclosure market in the year to come.
Another factor in the foreclosure crisis has been adjustable rate mortgages, which can easily double house payments on families that can barely afford their current payment. In the coming year many of these adjustable loans will reset, forcing yet even more families out of their homes.
In March, 2010 we will also see the expiration of a federal program which has kept mortgage rates rather low. This program allowed the federal government to buy mortgage backed securities and debt from Fannie Mae and Freddie Mac, but when it expires you can expect to see mortgage rates on the rise. This could mean a hike from 4% up to 6% before the end of the year.
Some changes being looked at by the Department of Housing and Urban Development are things like increasing the size of down payments required, raising the minimum credit score to qualify or even a possible increase in insurance premiums.
The government is currently offering a tax break to get more buyers into the market. If a buyer purchases their first home by the end of June they will qualify for tax breaks of up to $8,000. If a homeowner purchases a second property, they will be entitled to a tax credit of up to $6500. While this may be most tempting for new homeowners, you should be prepared to make sure you can still afford a mortgage and have a steady source of income.
There may be other changes that come upon us in 2010, so if you are planning on entering the real estate market make sure you remain financially secure and will not stumble upon hard times like so many others. This can be an exciting time to make a purchase, but you want to make sure you can handle whatever happens over the next year or two.
About the Author:
Karen Lissack has been writing about real estate and home related topics for close to a decade and a half. She is proficient in any aspect in real estate from buying to selling, even investing. She is fully informed about chapel hill real estate and has helped people find the best chapel hill homes in the market.
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