User:Real Estate Rocks

The Real Estate Market in Massachusetts & Why It Makes Sense to Buy

As a real estate agent, you frequently get asked the question, "How is market doing?". My standard answer is "It's always a good market for someone." Which for the past six years, it's been a buyer's market but the buyers were holding out for the bottom. In 2006, the real estate market hit its peak and then became reverted to a declining market and home values plummeted. The only way to recognize the bottom of the market, is after the market has started to rise again. Looking back, 2012 was the bottom of the market. For 2013, we have still have the lowest interests rates in history and are currently experiencing a shortage of inventory.

A example of why it makes sense to buy versus rent is a typical rent in Massachusetts for a 2 bedroom apartment is approximately $1,500. Based on today's rates and programs, that renter can purchase a small 2 bedroom single-family house using the Rural Development program with 0% down and rolling in closing costs to the purchase price and show up to the closing table with nothing out of pocket (based on qualifying for the Rural Development program) and now have pride of ownership.

A renter paying $1,500 a month usually rents for 3 years. That's $54,000 that could have gone towards a mortgage. Also for tax purposes - a renter can only claim up to 50% of their rent. A homeowner can claim all the interest paid for the year. Typically resulting in a substantial tax return. Recommendation - do your taxes as a renter and then recalculate as a home owner and see the difference.