Seal Beach, CA (PRWEB) November 23, 2011
While merchants are busy gearing up for a record Black Friday filled with sales, Olson Homes wants to spell out 10 reasons why shoppers should consider spending some of that hard earned income a new home instead. For people on the fence on what to buy this holiday season, Olson Homes' offers 10 reasons why it's good to buy a new home and skip the big box Black Friday sales this 2011 holiday season.
1. Home shoppers have waited long enough. Good deals are available for the asking:
In case home shoppers may have missed this, this is the best buyer's market we have seen on over 30 years. If home shoppers are waiting for the bottom, they may have already missed it! No one will ever catch the bottom mostly because no one knows where that is. The truth is it doesn't really matter so much in the long haul.
2. Mortgages are cheap. Very cheap:
Home shoppers can get a 30-year loan for around 4.3%. In some cases home shoppers may find special buy down rates that get down to 3.75% What's not to like about low interest rates? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, home shoppers won't see these mortgage rates again in their lifetime. And if we get deflation, and rates fall further, homeowners can always refinance.
3. Home shoppers will save on taxes. Tax breaks for itemization:
Here is a plus. Home shoppers can deduct the mortgage interest from their income taxes. Try doing that on your standard holiday purchases. With a new home purchase, home shoppers can deduct their real estate taxes. And they’ll get a tax break on capital gains–if any–when they sell. Sure, home shoppers need to do the math. Homeowners only get the income tax break if they itemize their tax deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more people earn, and the bigger their mortgage. But savvy homeowners will find that these tax breaks mean owning costs them less, often a lot less, than renting.
4. Make it personal. That new home is a design showcase:
Get in early enough on a new home and home shoppers can have the kitchen and bathrooms they really want. Homeowners can upgrade to their hearts content. They can get the flooring, window treatments, and upgraded appliances they have dreamed about. New home ownership also allows homeowners to add these items to their monthly mortgage payments at a cost that adds only a bit more to their monthly mortgage payments. Black Friday shoppers should try this instead of maxing out their credit cards at 22% interest rates. Consider that fact when in the check out line that this purchase won’t will be paid back for many years to come.
5. Home shoppers get a better home:
Renting a place gives people a place to rest their heads and a space to park their belongings, but generally speaking, if they want the best home in the best neighborhood, most people are better off buying a new home. Plus new homeowners get that great new home smell!
6. It offers some inflation protection:
Black Fridays come and go but studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if raising a young family and thinking about the next 30 or 40 years. The rule of thumb is if anyone that plans on living in a place for 5 years or more, they may be better off buying than renting. If someone is planning on moving every few years they may want to re-think that strategy and lock-in home ownership while it is still affordable and within reach.
7. It's risk capital. That is comfort now, equity later:
No, a home isn't the stock market and no one should view it as the way to get rich. That is what got people into the mess we see on the news. But current indicators suggest that the economy may surprise us all and start booming, sooner or later real estate prices will head up again, too. Long after the Black Friday sale items are forgotten in the back of a closet, your new home will have gained equity. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of a portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.
8. It's forced savings:
Suppose one can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will people save that $400 for their future? A lot of people won't. People have to do the math, but need to remember that part of a mortgage payment that goes to principal repayment isn't a cost. Homeowners are just paying themselves by building equity. As a forced monthly saving, it's a good discipline.
9. There is a lot to choose from.
Olson Homes may be biased, but when it comes to home affordability, home shoppers should consider one of our great new Southern California new home communities. From the mid $300s Olson Homes has the best selling Citrus Walk in Covina, from the high $200s Olson Homes has 2 new home communities; the final phase of Rio Walk in Montebello, and the very last home at Heritage Walk in Paramount, and in Garden Grove from the low $300s there is the nearly sold out Mosaic Walk. Any of these communities offer great locations and great value for new home shoppers. Olson Homes is currently offering year end savings of up to $20,000 off on selected home lots.
10. Sooner or later, the market will clear. Be there when it does:
Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, today’s home shoppers will be so happy they bought a new home now, and be able to brag about how smart they were way back when people without vision let this once in a lifetime home ownership opportunity pass them by.
When considering the best way to spend your hard earned dollars this holiday season, homeownership may well be the wiser choice in the long run.
About The Olson Company
Founded in 1988, The Olson Company is California’s leading developer of innovative and affordable In-town communities in established neighborhoods. The Olson Company creates uniquely designed communities which redevelop and enhance neighborhoods utilizing transit-oriented developments, live/work, mixed use developments, brownstones, single family attached and detached homes in partnerships with cities and other agencies.
Headquartered in Southern California with communities throughout the state, Olson is a recipient of America’s “Builder of the Year.” Further information about Olson Homes can be obtained online at Olsonhomes.com.