I think so. I am not trying to time the market bottom for real estate. I don’t think any one can time the market top or market bottom. Based on what we are going thru today, it appears that buying a house is not a bad idea.

However, it’s not for every one. First of all, you should have steady income and stable job or business. Second, do not try to buy houses or apartments in areas like San Francisco bay area where the prices haven’t gone down much.

If you have a good feeling about your job or business, it’s better to buy a house rather than renting it. In the wild-wild-2006, you can get the loan with 0% down. Not any more. You should be able to make at least 20% down payment. If you put down less than 20%, it’s harder to get good mortgage rates. You will also need to pay for private mortgage insurance (PMI) in that case. PMI is bad, very bad.

Mortgage rates are hovering around 5.42% for 30 year fixed mortgage and 5.15% for 15 year fixed mortgage. If you can afford it, it’s better to go for 15 year fixed mortgage. The rates are higher for jumbo loans. Do not get adjustable rate mortgage (ARM) at this point of zero percent economy. (When the interest rates go up, you will need to pay more interest in ARM).

Home buyer tax credit of $15,000 approved by Senate also would also help the home buyers now. Buyers would get 10 percent of the purchase price of any home, up to $15,000, applied to their tax bill. Consumers would be allowed to spread out the credit over two years, making it possible for those who pay less than $15,000 in taxes to benefit. Anyone who buys a home within a year of the bill’s signature would qualify. Please note that buyers must occupy the house as their main residence for at least two years. This provision is in place to discourage the speculators and house-flippers.

Barack Obama is faced with a large task as he enters office today as the 44th President of the United States. Our nation faces numerous battles militarily and is strained for cash because of the record deficit, but he also must do something to turn around an economy that is clearly sinking quickly.

To this point Barack Obama has primarily spoken of his stimulus plans and how he believes they can create jobs for at least 3 million Americans. The stimulus plan will be expensive in the interim, but President Obama sees it as being well worth the cost in the long because he believes it can bring a great return of investment for our nation. Today in President Obama’s inaugural speech he also said that plans will have to be gone through thoroughly and some that are not performing will have to be cut. Clearly President Obama understands that real changes must be made and quickly.

Wall Street and much of the investment world was slightly concerned with President Obama’s talk through the election season about some of his tax plans. Some on the street think that President Obama could end up making the economy worse by raising the capital gains tax to as much as 40% as he suggested he might. Others worry that though Obama promised tax cuts for 95% of the country, it will be hard for him to deliver on such a promise with a deficit that is already out of hand. The spending of our government clearly must be slowed down, and many hope that President Obama understands this.

So can Barack Obama right the economy? We won’t know the answer for quite some time. The other truth is, it will never be one person that turns an economy upwards or downwards, but the President must pick a cabinet stocked full of people who are wise to the issues we face in this modern economy. As Bharathi said in today’s post earlier, Americans like myself, as well as the rest of the world are surely hoping that his words turn into actions that stimulate the economy over time! This is a global economy and President Obama holds a very important position in leading the path to a possible recovery.