Getting Past The Headlines.
Surprisingly enough, in a time when the market seems unfavorable to many, it’s never been a better time for people to buy a home.
1. Interest rates are at all time lows. Currently for a 30 year fixed rate mortgage the average rate is approximately 4.375%. Rates do go up and down on a daily basis so don’t be discouraged because one day they may be up and the next day they could be down. If you were to purchase a $150,000 home at a rate of 4.375%, 30 year mortgage and 5% down your monthly principal & interest payment would only be $711.48 (remember you need to factor in property taxes & insurance & PMI to get a true monthly payment). That is a great payment amount and many rental properties cost more than that each month.
2. You are able to save on taxes. The way the current tax structure is designed you are able to deduct your mortgage interest and property taxes. You can’t do that while renting.
3. You gain an investment and equity. Each month when a mortgage payment is made part of that payment is for the principal balance. This means you own the property and can do almost anything to it instead of having to deal with a landlord. Also, that principal balance you are paying each month is equity. Over the long term home prices do appreciate (more than the stock market) which creates additional equity in your home.
4. New homes are energy efficient due to all of the code changes across the country homes built today are much more energy efficient and more up to date technologically (energy star appliances, higher efficiency furnaces and water heaters, high insulation values and more) than even 5 years ago. This means lower utility bills and costs for you.
5. New homes have more modern features today and offer a wide variety of floor plans and choices. Some of which include open floor plans, universal designs, home offices, egress windows making it easier to finish basements, flex space, low maintenance, innovative materials and construction techniques.
6. Builders of homes and housing complexes are offering bigger discounts on newer properties simply because people are buying less these days than before. These are the opportunities that you need to look out for because it may very well allow you to be a homeowner sooner
Don’t be afraid to take advantage of the buyer’s market that currently exists. After all, the current state of our economy and housing market benefits buyers and negotiating properly can mean a bigger difference of thousands of dollars in savings on a home.