Similar to many buyers, you may have been browsing home listings on the Internet for a long time,…thinking about the best time to buy. Buying a property is a major undertaking with a wide range of variables to consider. Here is information on why purchasing a property this year is a wise decision.
Advantages of Renting
If itemizing deductions on tax returns, you can use interest paid on your mortgage, real estate taxes, and if you qualify, mortgage insurance premiums. Most of the time, tax breaks make owning a home more affordable. When comparing costs, remember to include this estimate in your calculations.
Increased Rental Cost
There are two reasons for an increase in rental rates. First, many people who gave up their homes during the bubble burst resorted to renting. Secondly, the number of properties on the market is below demand so buyers have turned to renting until they can find a home to purchase. Both of these situations have added to demand, resulting in higher rental costs. The gap in the cost to rent vs. purchase is not that drastic right now.
Improving Home Values
If you have been watching for prices to bottom out before getting off the fence, it already has! In most markets, selling prices are going up. Now is the best time to buy before prices go up any more. As a plus, if the market continues to improve, your equity will appreciate in a short length of time.
Mortgage Rates Are Still Low
Even though interest rates have gone up over the last 12 months, they are still relatively low. They are expected to rise more this year, so it might be best to act before that happens. Even a half point increase in rates will significantly affect the price for which you qualify.
Changes in the Mortgage Industry
Changes in the mortgage industry continue. Qualification rules are harsher, making it more difficult to qualify. Loam amounts have been lowered. Further adjustments are planned for the coming months, so it is better to start the loan process now.
Reviewing Why Purchasing A Property This Year Is A Wise Decision
During certain markets, it is better to rent instead of buy, but this market is not one of them. The cost of renting, real estate price conditions, interest rates, and mortgage industry changes imply that if you would like to to buy a home, it is a great time to do so! When evaluating why purchasing a property this year is a wise decision, remember that there are certain personal circumstances to weigh. The information provided above does not cover that. For additional advice, contact Sonny Solomon at The Keyes Company.