Significant Increase in Home Buying in Immigrants
The Real Estate boom is a bubble? Many economists have been saying so for many months! The housing market is on the rise for a while; it has seen lowest interest rates in 40 years. Home values have remained solid while staying affordable. According to National Association of Realtors (NAR), 6.49 million existing homes will sell in the current year?setting a record.
Immigration is the key driver of primary housing demand in the United States and explains why home prices aren't headed toward a fall. The flood of immigration is untouched and continues unabated. Immigrants keep the housing market flush with first- time buyers, who come in at the bottom and support the market as they move up the housing ladder. Immigrants comprise roughly 11 percent of all resale home transactions.
One of the best things about moving to the United States is that you don't have to be a citizen or even a permanent resident to borrow money to buy a home. It isn't always easy for immigrants and long-term visitors to borrow money to buy houses. They have to develop a solid credit history, learn about taxes and insurance, buy within their means, and sometimes agree to less-than-ideal borrowing terms. Native-born home buyers encounter some of the same obstacles, but the problems sometimes are magnified for the foreign-born.
Benefits of owning a Home
- Social benefit of homeownership including family pride, better family life and community involvement
- Because of its leverage, real estate generate high returns and invested dollars and create significant wealth through price appreciation and force saving through the loan principle payment.
- Real Estate bring Tax benefit, up to $500,000 capital gain is tax if you lived in the house at least 2 year in last 5 years, which has given has many a comfortable retirement money.
- Real Estate ownership expands your borrowing and buying power.
BENIFITS OF YOUR CREDIT SCORE
As you improve your FICO� scores, you pay less to borrow. For example, on a $150,000 30-year, fixed-rate mortgage:
Your FICO� Score Your interest rate Your monthly payment
720-850 5.69% $869
700-719 5.81% $881
675-699 6.35% $933
620-674 7.50% $1,049
560-619 8.53% $1,157
500-559 9.29% $1,238
Note that it's OK to request and check your own credit report.This won't affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers. Don't open a number of new credit cards that you don't need, just to increase your available credit. This approach could backfire and actually lower score.
The hurdles are especially high for the hundreds of thousands of people who are in the United States on temporary work visas. The most common of these visas, the H-1B, lasts a maximum of six years for most holders.���
Home buying is fun for some people, they enjoy seeing different styles of houses, different settings, and they have a wish-list for their new home. The buying process is very enjoyable to them, especially to the wives! But, on the other hand, some people think, it is the most stressful process. And they want to get it over with quickly. The major criteria you to have consider when buying a house are: monthly payment you can afford, how long you plan to stay in the house, location, schools and number of bedrooms required. A knowledgeable buyer's agent can make this process a good experience. There are many areas you have to be informed in order to make a better decision, after all, you are purchasing the most expensive item of your life.
Jawaid Naeem, Realtor, can be contacted at: www.OneBigHouse.Com���or by phone: 404-787-1088.
Enjoyed reading Khabar magazine? Subscribe to Khabar and get a full digital copy of this Indian-American community magazine.
