In case you missed it, yesterdys New York Times had an article called "The Bonus Bounce." Most of my friends in the business were charged by the piece. I'll include the link so you can read for yourself http://www.nytimes.com/2010/02/07/realestate/07cov.html but the bottom line is that the Wall Street bonuses aren't what they used to be but neither are real estate prices... so the smart money is investing in you got it... property! In the city, they've noticed an uptick and to be honest we're seeing it in the Hamptons too! While it's not back to 2006 or 2007 just yet, it's a heck of a lot better than a year ago!!
So what's bringing buyers back faster than Al Pacino in Godfather III? According to one Wall Streeter quoted in the article, this is the right time. “It’s more the value now,” he said. “Real estate has bottomed out, and it’s time to step in.”
I couldn't agree more... or be more relieved.
I mean think about it. He will receive an $8,000 tax credit, which he wouldn’t receive if he puts the property ito contract after April 30 of this year. That’s $8,000! While it won't furnish the place, it don't hurt and can help cover some moving expenses.
This guy will get an interest rate close to 5%. If he continues to wait he'll probably pay at least 6% and perhaps as high as 7½ to 8%. The Wall Street Jornal said, “Think about the connection between interest rates and prices. If prices come down another 10% but interest rates increase by 1 percentage point, that would mean the same monthly payment today versus waiting.”
Also, he will reap the benefits when housing prices come back. Housing will come back. It always does. Prices should be back to a high in about 10 years.... once again real estate will prove to be the best and most consistant long term investment around. As Lex Luthor's father said to him right before he said "get out," people "always need a place to live."