My friend, Mark, called this week to discuss his opportunities in the real estate marketplace.  Mark is a long time renter, but rents have risen over the past few years and Mark was curious about comparable purchase costs.  I mentioned recently seeing an article that might help him decide.  Take a look below:

http://realtytimes.com/printrtpages/20090410_houseafford.htm .

Basically, the article was very favorable toward purchasing depending on a number of factors.

We are witnessing the next perfect storm in real estate – for buyers.  This is the time when prices are reaching new low points, mortgage financing is below 5% and the FHA program is allowing buyers to purchase property with very little money down.  In many cases, buyers are able to pay less money each month to buy a property than the purchaser currently pays in rent.  This is a trend across the country.  There are also various tax benefits such as Maryland’s first time homeowner transfer tax savings of .25%, and the federal tax credit of $8,000.

It is clear that Mark can save money as a result of these factors and the deductibility of his monthly interest payments and real estate taxes from his individual state and federal tax return.

If I can help you with your real estate questions, e-mail or call me.