You can make your dreams of owning your home a reality in spite of the Government no longer offering the 8,000 dollar tax credit.  Here are 7 reasons to buy a home now and make more than $8,000:

 1) You can get a good deal 

The current market is a buyer's dream!  Consider that most of the other buyers who were in the market vanished as soon as the tax credit expired. This means there is less competition when buying the house of your dreams.  And prices have come down also -about 30% from their peak in 2007.  So keep this in mind, no one can really catch the bottom of the market, if you see a good deal, TAKE IT!  

 2) Mortgages are cheap

You can possibly get a 30-year loan for around 4.5%!  These are the lowest rates on record.  As recently as two years ago, rates were at about 6.5%.  But timing is everything, if inflation picks up, you will not see these rates again in your lifetime.  If on the other hand, we get deflation, rates could go further down and you can refinance.

 3) You'll save on taxes 

You can deduct the mortgage interest from your income taxes.  And when you sell your home, you are eligible for a tax break on your capital gains.  You don't have this benefit if you are renting.  As you factor these tax breaks into your overall financial picture, owning your home makes more sense than renting.  

 4) It is your home! 

You can have the bathroom and kitchen of your choice, or remodel as you wish, you can move walls or build an extension.  Not so with renting where these types of changes are often impossible.  Sure you can make your apartment feel like home, but ultimately it belongs to someone else.

 5) It's a hedge against inflation 

Okay, not a perfect hedge, but studies suggest that over the long-term, housing has tended to beat inflation by a couple of percentage points a year.  This is valuable stuff, especially for young families who must plan for their children's education and for retirement in the next 30 or 40 years.

 6) It's forced savings 

Experts suggest we save 20% of our income, but who can?  Currently American's savings rate is at about 6.9%.  Better than the dismal 1% experienced in 2007, but still not enough.  Ask yourself, if you could rent an apartment for $1,500 a month versus purchasing a home for $2,000 a month, would you save the extra $500 for your future?  If you answered no, you are not alone.  A lot of people wouldn't.  Of course do the math between renting and owning, but keep in mind that the part of your mortgage payment that goes to principal repayment isn't a cost to you.  You are paying yourself by building equity.

 7) It's an investment 

Sooner or later the market will recover.  Demand and supply eventually will balance out.  Our population is forecast to grow by over 100 million people in the next 4 decades.  This means millions of Americans will be looking for housing in the years to come - Perhaps your home.  So buy now!

If after reading these you feel motivate to buy a home, start by asking yourself these simple questions:

1) Do I have an income I can document and verify for at least two years?
2) Do I have established credit and is it in good standing?
3) Do I have some savings?
4) Am I of legal age and a legal resident?

If you answered YES to those questions, then your next step should be to speak face-to-face with a professional - a home finance expert who can explain in detail the three most common home financing options available and which one suits you best. But if you answer NO to some of the questions - credit and savings can always be improved!  Let an expert guide you.

Next month, we'll explore the Economic Benefits of Owning Real Estate.