10 Reasons Why Now Is the Time to Buy

People keep asking me, "Is this the time to buy?

The answer to this question can seem somewhat complicated, but does not need to be. The answer is, "Yes!"

For most people, in the Studio City, North Hollywood, Valley Village, Toluca Lake area, this is absolutely a great time to buy. Prices on residential housing are low again, interest rates are historically very low, and we may not see this combination again for many years.

Some people wonder if prices have finally bottomed. Obviously there is no way to predict that, but I can tell you this: The people who wait for the absolute bottom pricing will miss it.

Absolute bottom pricing may not matter anyway in this already low-priced market. Consider things like payments versus renting, long-term security, and tax deductions.

Most realtors agree. By the time we are sure that prices have bottomed out, we will have missed it by about six months. Most experts agree that the probability of interest rates going much higher and real estate loans becoming very difficult to obtain is very real.

One might save a little bit on price by waiting and still end up with much higher payments. On the other hand, prices may have bottomed in some areas and price points. Some people will miss out on what may be a once in a lifetime opportunity to own real estate at great prices and interest rates.

While it is true that there are more foreclosures in our future, prices seem to already reflect that knowledge. Here are some other things to consider ...  

10 Reasons To Buy Real Estate Today

1. For many people, it is now cheaper to own than rent.

2. There is still a tax deduction for mortgage interest and property taxes. This may allow you to get back a good percentage of your payments in tax savings.

3. Many people who could not afford the payments, or qualify for a loan in 2006 and 2007, now can. They are getting a second chance.

4. For the first time in many years, it is possible to buy property as an investment and rent it out with a positive cash flow. This may be much, much better return then a savings account.

5. Inflation may be a major factor soon. We are seeing food and gas prices go up. If inflation gets out of control and all prices shoot up, I would not like to be the guy who does not own at least one piece of property to live on.

6. You can now buy a house or condo at prices as low as 40% to 50% off of their highest value.

7. Even if market prices drop a little more. Now is the time to lock in a payment and deal. I really believe that 10 years from now many people will be kicking themselves and saying "I should have purchased back in 2011."

7. In some cases, especially at the lower price points, prices are going up. Bidding wars are common again on the best deals.

8. Remember, it does not matter what the "whole market" is doing. It matters that you get a great deal, and there are fantastic deals out there.

9. I notice an unusually high number of real estate agents buying property for themselves. Do you think those of us close to real estate may have a feel for this?

10. When I sold my own properties right before the market peaked, I was told, "Do not do that," by many people. They informed me that real estate was going up forever. Really?

These are the same folks that now believe that prices will go down forever.

In fact, real estate value has been ebbing and flowing forever. Longterm, land value has managed to keep up with inflation better than anything else. Long term wealth and security has always been related to real estate ... I'm just sayin'.