The tax credit that is being offered in 2010 is a great incentive for those who are READY to buy a home. Being ready involves many things, some of which people do not consider before taking on the responsibility of home ownership. It is really important that you are both
financially and emotionally ready and some people (including myself) can get easily excited about the prospect of buying a new (or existing) home.
Two of the things that I have learned from home ownership is that it is a place to live, not an investment AND if you need to sell in a
down market, be prepared to wait until the market turns around! If you need more space, crave yard work, or just want to be able to tell others that you live in a home AND you can afford the additional expenses associated with home ownership (down payment, closing costs, taxes, insurance, mortgage interest, repairs, redecorating), etc. then it’s probably a good idea for you.
The tax incentive you may receive will (in most cases) not offset the additional costs. It will also not give you free time on the weekends and the ability to move whenever you want.
Selling a home takes patience and money, not to mention that you may have to sell in a down market and pay money out of pocket to sell!
There are so many things to consider . . . .
By Jennifer Moran