There are many reasons why people would like to buy real estate. Whether it is a family looking for a place to call home, a corporation who is adding to their list of rental units, or a small company who would like to try flipping a house for a business transaction.

The year 2010 will bring about many changes in the real estate world. One of the questions you may want to think about is whether or not investing in real estate is a wise decision for you. Here are a few things to consider:

The first thing to understand is that the prices and values of homes are set to go up in the future. This means if you purchase a house cheap right now you could expect to turn it around for a nice profit in the future. This also means you can pick up property for your personal use without facing a dropping value a short while after purchase.

With the economy still unstable, many more homeowners will find themselves unable to pay their mortgages. It is said that 1 out of every 4 homeowners owe more on their mortgage than their home is worth. With many people losing their jobs, their mortgages will go unpaid and their homes will be lost.

Another factor in the foreclosure crisis has been adjustable rate mortgages, which can easily double house payments on families that can barely afford their current payment. In the coming year many of these adjustable loans will reset, forcing yet even more families out of their homes.

Another consideration is the expiration of a critical federal program in March. This was a program to help homeowners that allowed the government to purchase debt and mortgage backed securities from Fannie Mae and Freddie Mac. It has kept mortgage rates lower, but when it expires you can expect to see mortgage rates rise back up. Rates could go from 4.88% to 6% easily.

The Department of Housing and Urban Development (HUD) is also considering some other big changes for the real estate market in the upcoming year which might make securing real estate more difficult in the future. For instance, the required credit score could be much higher, you may be required to put down a substantially larger down payment, and insurance premiums could skyrocket.

Finally, consider the value of the tax cuts currently being offered by the federal government. If you purchase your first home (the rules are lax on what \”first\” means) before July, you could receive up to $8,000 in tax breaks. If you decide to purchase a second property, you could receive up to $6,500 in tax breaks. Of course, you want to make sure you can afford your payments long term and not get sucked in by the temptation of this offer.

There may be other changes that come upon us in 2010, so if you are planning on entering the real estate market make sure you remain financially secure and will not stumble upon hard times like so many others. This can be an exciting time to make a purchase, but you want to make sure you can handle whatever happens over the next year or two.

Karen Lissack has been reporting about real estate and home related topics for close to 15 years. She will help you with information in various aspects in real estate from buying to selling, even investing. She is fully informed about chapel hill real estate and has helped people find the best chapel hill homes the market can offer.