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Mitch Graves

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Effective January 1st 2013, as part of the Health Care for America Plan, otherwise known as Obama Care, there will be an 3.8% tax on some types of investment income. I have posted a brochure from the National Association of Realtors to this blog that will explain through examples, some of the new changes. This will allow you to see how some of the funding for the Health Care for America Plan will be implemented. Feel free to contact me with any questions.    

Obama Care 3.8% Real Estate Scenarios & Examples

Should I Buy a Home Now?

by Mitch Graves

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.

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Mitch Graves
Century 21 Union Realty
23900 Hawthorne Blvd, Suite 200
Torrance CA 90505
(310)749-1435
Fax: (310)793-3307