Top Reasons to Buy a Home:
Now is a particularly great time to buy a home, whether you are a first time buyer “moving up”, considering a second home, or are considering stepping into the profitable sphere of investment properties. Interest rates are still incredibly low so now is the perfect time to take that exciting leap.
Buying Beat Renting
Rental prices are expected to continue climbing. Mortgage interest rates would need to reach around 6.5% to equal the rental rates at the national average. (http://money.cnn.com/2015/12/04/real_estate/2016-real-estate/) Even as interest rates begin to rise, there will be some time until the two options are competitive, meaning that buying is still the less expensive option and a better deal in most cities.
Interest Rates Remain Low
While interest rates are currently holding around 4% for a 30-year fixed mortgage rate, they are expected to rise shortly and steadily. Just an increase in a point or two can mean the difference between a home being affordable or just out of reach. Purchasing a home under the lowest possible interest rates, which we may only last a little while longer, would be an excellent course of action.
Home Prices on the Rise
The housing market has seen a steady increase in prices the past few years. It would be wise to buy now before prices close in further on the inflated values we saw pre-recession. In some areas it’s too late. Fortunately there are still many areas that offer great value. With prices expected to continue rising, now is the perfect time to purchase a home.
Supply & Demand
Demand for homes has risen with the steep decline in new construction that accompanied the recession. There are far more people out there looking to buy than there are properties available. This shortage will be the case for some time to come, so get in a home now as populations will continue to rise and demand increase.
If you are debating between renting and buying, do consider the tax benefit of being able to deduct your annual mortgage interest payments and real estate property taxes from your personal income tax liability.
When you use borrowed money to invest in a home and the value appreciates then you not only earn money on the fund your borrowed but on the money you invested as well. Ownership is an excellent way to boost your financial position.
Increase Net Worth
The beauty of buying a home is that every month you are adding to your net worth as you pay down your principal. When you buy a home in an appreciating market and your debt decreases with every payment, you are increasing your savings and making money simply by owning a home.
Buying a home under the right market conditions and guided by your agent to the optimal property has always been a smart way to invest. It’s a very wise investment to buy now while interest rates are in a historically low range.
I would love to help you find and secure the perfect home.