NY & NJ Real Estate Transactions: Top Reasons to Buy a Home in New York or New Jersey

Deciding to purchase a home for the first time or purchasing a new home if you are an existing home owner is a big decision to make in this market.  You may be wondering if it is safe to buy a home or if it is in your best interest to buy a home with the economy not fully back to normal.  While these are all valid concerns the market may actually be the reason you should buy a home.  First, before we get into the reasons you should buy a home, I want to start by saying you should never feel pressured into purchasing a home.  Always make sure that when purchasing a home you feel comfortable with your purchase.  Keep in mind that you will be in this house probably for many years to come and you want to be happy with your house purchase.   You will also want to make sure you are able to afford a mortgage payment if you will be considering getting a loan for your home purchase and you will also want to make sure you get a home inspection.

Now that we have established some ground rules for purchasing a house here are some things to may help you decide to stop just thinking about buying a home and actually go do it within the next few months:

  • Reason #1Housing Tax Credit – If the extension of the housing tax credit is approved (which more than likely it will be approved by the end of the week) not only will the provisions of the First Time Homebuyers Tax Credit be extended until the end of April 2010 but it will also be extended in the sense that a reduced credit will now be available to certain existing homeowners.   The new tax credit would consist of a tax credit that is 10% of the house’s purchase price up to $8,000 if they have a sales agreement in hand by April 30 and close title on the house by June 30, 2010.  This credit would be available to first time home buyers of those interested in buying a house that have not owned property in the past three years.  The limit for the household income if single will be $125,000 or $250,000 for a couple.  The next credit is a new incentive to take advantage of the housing tax credit which offers a reduced tax credit of up to $6,500 to certain existing homeowners.
  • Reason #2 – Prices are Low – Because the economy is not stable enough to say it has fully recovered or come close to fully recovering yet housing prices are still low.  In fact, sellers in Staten Island, Brooklyn, Bronx, Manhattan Queens, most areas of New Jersey and nationwide are faced with having to list their houses at a low price and are sometimes forced to lower that price even more to sell their house.   For buyers this is a great thing because they are able to get a house that a few years ago would have cost tens of thousands more than what they are selling for now.
  • Reason #3 – Foreclosures and Short Sales are at Record Highs – Distressed homes accounted for a significant number of houses sold this year.  Distressed homes include foreclosure’s being sold and short sales which usually sell for anywhere between 15 -20% less of market value.  Taking advantage of these types of homes can potentially benefit you as a buyer but buyers should also beware of the possible risks associated with short sales and foreclosures.
  • Reason #4 – Low Mortgage Rates – Rates for mortgages currently run around the 5% APR range for a 30-year fixed mortgage.  This is much lower than previous years and the rate of a mortgage that you are eligible for is a huge factor in deciding factor in whether or not you will purchase a house and how much you are willing to spend on it.  The lowered mortgage rates are a big incentive for many people who are deciding to purchase homes right now.
  • Reason #5 (applicable if you are purchasing a home in New York) – Mortgage Tax Credit – A mortgage tax credit is available if you are purchasing a home in New York City.  The tax credit can be used if you are a first time homebuyer and can be combined with the federal First Time Homebuyers Tax Credit.   If you do a real estate transaction in New York for a New York City home and obtain a new fixed rate mortgage through certain types of loans you will be eligible to receive up to 20% off of your mortgage tax for the entire life of the loan.
  • Reason #6 (applicable if you are purchasing a home in New Jersey) – State Housing Grants – There are many New Jersey state housing grants available to first time home buyers looking to complete a real estate transaction for a New Jersey home.  There are many different types of New Jersey housing grants and the terms to each vary.

 

Steven T. Decker is an experienced real estate lawyer, author and speaker. With over 20 years of experience, Steven represents individuals and investors in the purchase of residential and commercial real property. Steven is the author of "The Five Myths that can Ruin the Purchase of Your Home" and he is the publisher of the "New York Real Estate Law Blog". If you are buying or selling a home or commercial property in Staten Island, New York City or New Jersey contact Steven T. Decker, Esq. to discuss the services that he offers and how his legal representation will assist you.

IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Steven T. Decker, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. The content of this website is subject to the Copyright of its author, Steven T. Decker, Esq.
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