Real Estate Search Direct

With all the talk of bailouts and government incentives some people are starting to wonder if first time home buyers can actually get a good deal in this market.

Homer Buyer was concerned about the real estate market.  He heard that home prices had been falling, but he was determined to buy a house and move in on return from his honeymoon.  He didn’t want to buy something that would soon be less than what he paid for it.

But millions of people buy new cars every year knowing that the  minute they drive off the lot the value decreases by thousands of dollars.

People tend to look at buying a home strictly as an investment, when actually it is a necessity of life.  You have to live somewhere, whether you are buying your home, or paying rent to a landlord so they can pay their mortgage.

While most people are concerned that housing prices are still falling, there are some good reasons to buy now rather than later, the first time home buyer tax credit being one of them. 

Effective for homes purchased January 1, 2009 until December 1, 2009, there is a federal tax credit of $8000 or 10 % of the purchase price for first time home buyers.  This is not the same tax credit available in 2008 that had to be repaid over 15 years (more of an interest free loan), the 2009 version doesn’t have to be repaid.

In addition, California just passed a $10,000 tax credit effective March 1st for buyers of newly constructed housing.

With the new stimulus package there are bound to be other upcoming incentives to get the housing market stabilized as well.

So it’s not so hard to answer the question if first time home buyers can get a good deal.  When you consider you would  have paid a good percentage of a monthly mortgage payment towards rent, and the mortgage interest is tax deductible your monthly payment is better off used to pay towards a mortgage instead of spent with nothing to show for your money a month later.

If a house is still hard to afford, there are other ways to save money when buying a house.

• Buy foreclosures or other distressed property to get homes below market value.
• Buy in areas with economic factors making the  housing cheaper.
• Buy types of property that  are more affordable.
• Learn negotiating tactics to get the seller to lower their price.
• Get the right financing to make the deal work.

For more ideas to get the best price on a home visit the “Buy Houses For Less Money” page

Allen Davis
Realestatesearchdirect.com