Right now, it's less expensive to purchase then lease even if tax and insurance expenses are factored in. This is a very abnormal time. This situation only happens after a market meltdown after a bubble pops. When things revert to normal, the process is generally chaotic.
The past 10 years saw prices rise to a point that was far beyond being cost-effective. Returning to normal was unavoidable in the longer term. After a bubble pops, things generally don't just return to normal and stop. A correction is generally opposite in proportion to the bubble that it corrects. Now, prices have fallen below the long run trend line.
Having said that, you shouldn't expect a speedy recovery. Although it is finally an excellent time to purchase, there shouldn't be any hurry. Another historic fact is that recoveries following an enormous boom and bust cycle will take a very long time. Another important point is that there is no guarantee that prices won't fall even more from here.
This does not mean that you need to wait with the sole purpose of timing the lowest price. Like investing in equities, timing the ideal purchasing opportunity is next to impossible. Investment banks believe that prices will fall nationwide a little bit further and level off in 2013.
If you are purchasing as an investment, be totally certain to make an excellent positive cash flow. In addition, remember to account for vacancy rates when calculating your investment's potential. In Las Vegas particularly, vacancy rates are particularly high as many homes are unoccupied. You could use our cash flow analysis calculator to circumvent the most generally overlooked costs.
One more reason why purchasing now makes sense it that interest rates are near new lows. This will not last forever because government budget deficits and money printing will eventually overpower the monetary system. If you can lock in a low fixed interest rate, it is probable you'll pay off your brand new place with very inexpensive dollars over the following 30 years.
The past 10 years saw prices rise to a point that was far beyond being cost-effective. Returning to normal was unavoidable in the longer term. After a bubble pops, things generally don't just return to normal and stop. A correction is generally opposite in proportion to the bubble that it corrects. Now, prices have fallen below the long run trend line.
Having said that, you shouldn't expect a speedy recovery. Although it is finally an excellent time to purchase, there shouldn't be any hurry. Another historic fact is that recoveries following an enormous boom and bust cycle will take a very long time. Another important point is that there is no guarantee that prices won't fall even more from here.
This does not mean that you need to wait with the sole purpose of timing the lowest price. Like investing in equities, timing the ideal purchasing opportunity is next to impossible. Investment banks believe that prices will fall nationwide a little bit further and level off in 2013.
If you are purchasing as an investment, be totally certain to make an excellent positive cash flow. In addition, remember to account for vacancy rates when calculating your investment's potential. In Las Vegas particularly, vacancy rates are particularly high as many homes are unoccupied. You could use our cash flow analysis calculator to circumvent the most generally overlooked costs.
One more reason why purchasing now makes sense it that interest rates are near new lows. This will not last forever because government budget deficits and money printing will eventually overpower the monetary system. If you can lock in a low fixed interest rate, it is probable you'll pay off your brand new place with very inexpensive dollars over the following 30 years.
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