Many yearn to own their own home. A place where they can do pretty much anything they want. If they want to paint a bedroom a certain color then they can without having to ask a landlord. Owning a home is part of the American dream. Over the last 5 years it became a night mare for many people as the real estate bubble popped and caused this current economic downturn. However, the perfect opportunity has presented itself to many people. Homes are affordable again. Here are some reasons to purchase a home now.

1. Interest rates are low. They are hovering around lows not seen for decades. Buying a home at this time could be the perfect storm - low interest rates and low prices. Your monthly mortgage payments could be lower than the rent you are paying. You also can still get FHA financing which requires a very low down payment. If rates rise you might get priced out of the market for many years.

2. The real estate market might be at the bottom. Everyone has an opinion but no one knows for sure where the market is headed. Logic tells you that prices may be at the bottom and will perhaps stay there for a little while until the country recovers from the current recession. Don’t bother trying to time the real estate market to the day or month. If your time horizon for owning a home is five years or more than this is a good time to be a home buyer.

3. It is just nice to live in a place that you own. You have more control when you own where you live. Suppose your landlord decides to sell. Then you have to go through the headache of moving and finding a new place to live. Being a renter can be a hassle.

4. Create wealth. Despite what has happened in the real estate market the last 5 years people will start making money again in real estate. We will eventually see appreciation again. Markets move in cycles and we may be at the end of this one. When you buy a home you are paying off your mortgage. If your home appreciates it is a double whammy. Suppose you have a 15 year mortgage and your home appreciates modestly for the next 15 years. At the end of your mortgage you will have a home free and clean and worth a pretty penny. If you buy rental properties and hang on to them for awhile it could make for a nice retirement plan.

5. Improve your credit. When you get a mortgage and pay on time your credit score will improve. Homeowners are considered to be a lower risk and are typically given a higher credit score. A better score means that you can borrow money more easily and at lower rates.

There will probably never be another time that home prices are so low in comparison to their true value. With low mortgage rates and a large variety of homes to select from on the market, there is not a better time than now to purchase your dream home.

Marc Rasmussen sells fabulous Longboat Key Neighborhoods

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