Is It Time to Buy in Florida?

Florida was one of the states hardest hit by the mortgage meltdown and many are arguing that it may now be time to buy.  Lower sales prices, seller incentives, and affordable mortgage rates are making 2008 a buyer’s market in many cases. Buyers can now purchase a home with a small down payment with a low-rate FHA or VA mortgage loan. In most cases, the monthly payments on these mortgages are comparable to rent payments!

“Home ownership is an excellent financial investment for most renters, especially in our current real estate climate,” said Nancy Riley, a broker with Coldwell Banker Residential Real Estate in Pinellas Country and 2007 president of the Florida Association of Realtors.

Home ownership continues to be a wise long-term investment, particularly now when housing prices are at significant lows. Renting makes sense for those looking to move over the next year or two but home ownership is perfect for those looking for a longer-term investment.  Financing remains available with very favorable mortgage rates for qualified buyers with good credit.

Home ownership has several key financial benefits over renting. First, you get deductions in your annual income tax return – most can deduct their property taxes and mortgage interest payments from their gross income. Secondly, home owners are entitled to locked-in monthly payments with a fixed mortgage, unlike renters who can see their rents skyrocket. And finally, they are entitled to any appreciation on their house price, which has tended to increase over time (despite a small downturn now).

In the end, housing continues to be a great investment over the long-term and today’s cheap prices as a result of credit issues may make it worthwhile to pursue now… there may have never been a better time to buy than now!

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