In these uncertain economic times, potential buyers may be left scratching their heads and wondering if this is really the “right” time to buy. As a Realtor in the USVI, I am often asked the following questions:
“If home prices are continuing to drop, why should I make a purchase now?” Cost, not price, should be a buyer’s primary concern. Even though home prices may continue to take a dip in the coming months, interest rates are increasing. So waiting for prices to bottom out, but getting saddled with a higher interest rate will increase the total cost of the home over the life of the mortgage. I recommend that any potential buyer contact a mortgage professional to understand the full effect of what an interest rate increase will cost you as a potential buyer, and this should aid you making a decision about when the right time to buy is for you.
“If I buy know, when will I start to see appreciation on my investment?” Every market varies from region to region as to appreciation value(s), so it is important to look at the pricing trends specific to your area. The National Association of Realtors predicts that there will be a small up tic in home pricing in 2011, and a steady increase in pricing through 2015, with a cumulative appreciation of more than 10 percent in the next four years.
“I am really better of buying than renting?” According to the Fannie Mae National Housing Survey, the top four reasons people decide to purchase a home have nothing to do with monetary considerations; such as having a place to raise and school their children, a place where their family will safe, adequate living space for growing families, and to have a sense of ownership and control over the property. Additionally, there are several monetary positives on the side of home ownership, such as tax incentives and the building of equity.
For more information about buying, selling and/or leasing in the USVI, please contact Jennie Rosenberg at 340.690.4903 or firstname.lastname@example.org.