Guest post by Kathleen Macky
Palm Springs has always been like a sparkling jewel in the desert. With beautiful golf courses, luxurious resort hotels, highly-rated spas, restaurants, and shopping, and all the beauty of the incomparable landscape surrounding you, it has long been the diamond in the rough for Southern Californians (and visitors from all over the world) seeking a unique retreat. And if you’ve ever thought of buying property in this desert dreamland, or in equally appealing neighboring communities in the Coachella Valley (such as Cathedral City, Rancho Mirage, Palm Desert, La Quinta, or Indio), now is the perfect time, for several reasons.
1. The market is improving. While the numbers on foreclosures and bank-owned homes in California is still uncomfortably high, the market has finally begun to level out. This can mean several good things for prospective home buyers. For one thing, it may soon become easier to get a loan. Banks are eager to unload the many properties that are bogging them down and they are often willing to work with buyers to come to some sort of mutually beneficial arrangement. It is also important to buy while prices are still relatively low so that you can enjoy the best return on your investment. And amongst the many fine communities of the Coachella Valley, property is always a valuable commodity, so you really can’t go wrong purchasing a first home for your young family, a dwelling to live out your twilight years in the heart of desert beauty, or some turf and tinder that is purely for investment purposes.
2. Tax credits are available. If you thought you were too late to take advantage of the federal tax credit for homebuyers ($8,000 for first time, $6,500 for repeat), you were wrong. The offer has been extended to include houses that will close by September 30th (as long as a contract was in place by April 30th), so don’t shred your documents just yet. Service members who were outside the United States may also qualify for a 1-year extension, so look into the requirements if you think you might be eligible to apply. Finally, California is offering a state tax credit (to any taxpayer who purchases a principle residence before January 1, 2011).
3. Banks are on your side. As it turns out, many banks feel that homeowners make a better client than investors. It’s hard to believe, but you are less of a risk for lenders (and investors may have lost their opportunity by waiting for prices to drop further). So even if you’ve heard that lenders are taking a hard line when it comes to qualifying potential homeowners for loans, consider that you might be a wiser choice than a conglomerate that’s looking to flip properties.
4. It’s a good investment. Rental property is always a sound investment (barring natural disaster). Whether you plan to lease out to long-term renters, create a time-share, or cater to seasonal tourists, buying a home in Palm Springs could turn out to be a lucrative undertaking. Just consider, before you put pen to paper, what your potential live-ins might desire (tourists will want to be close to attractions while long-term renters might prefer to live near schools that their kids will attend or enjoy some privacy, peace and quiet, or a view). And if you plan to use your purchase as a primary residence (or even a seasonal home), consider that you are in a buyer’s market and your property will certainly increase in value since Palm Springs and adjacent areas are always desirable destinations.
5. You deserve it! Normally, this is not a good reason to buy anything. But if you have been smart with your money (saving up to purchase a home, working to earn an excellent credit score, etc.) then you deserve to reap the benefits of your planning and good sense. And with prices still low, plenty of properties to choose from, tax credits on the way out, and desert vistas beckoning, you should consider that now really is the perfect time to procure the home of your dreams in the alluring Coachella Valley.
Please see www.palmspringsgreathomes.com to search for all Palm Springs area homes.
Kathleen Macky owns a real estate website where you can browse Wesley Chapel homes for sale.
