Six Reasons To Consider Jumping In and Buying a Home in Connecticut

The Storrs and Connecticut real estate markets are starting to take off (like somebody has been telling you…), and now I’ve got some great points to prove what I’ve been saying all along. 

1. Uncle Sam Wants You!

…To buy a house.  For one, first time home buyers can receive a tax credit of up to $8000.  That’s a heck of a lot of scratch.  And check this out- “first time” buyers are considered people who haven’t owned in the last three years.  It doesn’t really have to be your first house!  Also, interest rates are historically low right now, aaannnddd….. The Fed is doing everything it can to free up loan money.

2. Connecticut Peeps Gotta Live

800,000 new households are formed every year in this country.  This means that even with the available inventory (which has been shrinking), the market HAS to tighten eventually, based on the simple laws of supply and demand (That’s that whole ‘Adam Smith’ thing I was talking about a few days ago).  I love the word peeps – so much more fun than just “people” – ask any teenager – they are all peeps – “my peeps” means “my friends” – I love that!

3. Borrowers Leverage Their Investment When They Buy a Home in Connecticut

“If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 ”down” on a $100,00 home and the value increases 10 percent, you’ve made $10,000″ profit – way better than $1,000 right? I don’t have much to say about that, it seems pretty straightforward – and – I stole it from the Wall Street Journal. I pretty much knew it anyway, as I hope all of you do too.  Oh, and by the way, have any of you seen any decent homes for $100,000? Even in this current Connecticut market it is impossible – total wrecks, yes. Homes you actually want to live in? No chance.

4. Low Prices Mean Faster and Better Equity

When home prices jump back up, guess what you did?  If you answered “Totally killed it in the housing market,” you’d be 100% correct.

5. The More Things Change in Real Estate, the More Your Payments Will Stay the Same

Guess what happens to a fixed rate mortgage?  Ummm…. nothing.  Guess what happens to everything else in this wacky world, including but not limited to: Rent (No, not that Rent.) ?  Yes, rents can and usually do, go up.  So simply having a fixed monthly rate, will save you down the road (not to mention that sweet equity deal I mentioned earlier).

6. It’s Your World

It’s your life and your home.  Aside from all the economic advice I can give you, there are few joys in this world that are greater than saying, “This is MY house, I love it here.”