WHY BUY NOW?


Venice is booming! All you have to do is look around and see movement in the local real estate market. Commercial buildings are being knocked down and quickly replaced by brand new ones. Vacant residential lots that have been idle for years are being cleared to make way for new construction. Re-fi's are being processed daily. My theory is that the predicted changes in the article below are coming very soon.


The age old question, why buy now? Why not wait until the prices drop? Why not wait until next year? Why not wait until after the holidays? For obvious reasons, we want you to buy now, because we're selling this home. But, really, why should you buy now? We already answered the questions - Why Venice? Why Venice Gardens? And, Why 509 Briarwood Road? Following is why you should buy now.


Quantitative easing is not just an economic term discussed on the news. It affects everyone who may finance a home. On October 24, the FED announced that quantitative easing is officially ending. Mortgage interest rates will climb. The purpose of quantitative easing was to artificially hold interest rates low to stimulate the economy. Apparently, the FED has decided that goal has been reached, and is now ending the artificial hold. Predictions are that by around January 2015, there will be a substantial increase in mortgage rates. But, if you're paying cash, this does not affect you. Read on.


Florida has one of the strongest Homestead Exemption laws in the country. One of the benefits is that there is a substantial break on real estate taxes for homeowners who qualify. Substantial tax break is $25,000. to $50,000. off the top. In order to qualify for 2015 you must have closed on your house by December 31 and the home must be your primary residence. But, if you're planning on purchasing a second home, and not a primary residence, this does not affect you. Read on.


Prices are going up. All you have to do is look around Venice to see the growth and positive change. New restaurants are popping up. New homes are being built. Foreclosures are few and far between. It's all about scarcity. Supply and demand. The foreclosure down the street, 415 Briarwood Road, sold in September for $94,000. We've watched them renovate it. So far, with a new roof, new kitchen and bathrooms, plumbing & electrical, we estimate that they have probably already spent close to $50,000. And, there is more work to do. The exterior has barely been touched, and we have no idea how much that pool will cost to put back in shape. So, my guess is that by the time their finished, the price will be pretty close to what we're asking. This scenario is similar to any of the homes that you find that need major work. This home, 509 Briarwood, doesn't need any work. We mean it when we say - Move In Ready.


We're receiving lots of interest and calls. No bona fide offers yet. But, we're optimistic that someone will come along and fall in love with this house and snatch it up. Are you the one? Call me if you have questions about this home - 941-525-3546 - Ruth.


 An article on Motley Fool - "1 Reason You Should Buy a House Right Now" (7/5/14) explains why the time is right to make your purchase.


According to the National Association of Realtor's, houses are 37% more affordable today than they've been over an average of the past 33 years. 

Houses are so affordable right now for two reasons. The first is that mortgage rates are still remarkably low. Currently, the average rate on a 30-year fixed-rate mortgage is only 4.12%. This is less than half the long-run average of 8.52% dating back to 1971.

The second reason is that nationwide home prices are still 17% below their 2006 peak. Home values remain depressed in the vast majority of major American cities.

What's important to understand now, however, is that these conditions won't last much longer. The Federal Reserve is in the process of reducing its support for the economy. And one of the biggest consequences of its doing so will be higher mortgage rates.

In the middle of last year mortgage rates rose sharply in response to the Fed's hint that they would begin tapering the third round of quantitative easing. Quantitative easing is the process the Fed used to spur the economy by reducing mortgage rates and thereby increasing demand for housing.

Equally important is the fact that home prices are also rising.. Over the past year, they're up by 8.9%. Over the past two years, they're up by 19.7%. Over the past three years, they're up by 23%. And there's little evidence that this trend is coming to an end anytime soon.

Put this all together, in turn, and it should be obvious why now is such a good time to buy a house.

Procrastination is opportunity's assassin. Victor Kiam