If you’ve been paying any attention to housing prices over the last few years, you’ve probably seen them skyrocketing. For many people, this influx in property prices is preventing them from taking the plunge into homeownership. However, with house prices rising steadily, now is actually the best time to work with a realtor in Summerfield to get into your own home. Here are some of the reasons we want to discuss with you.
House Prices Are Rising
For the past 20 years, housing prices have risen between 3% to 6% every year. This trend is very likely to continue on that path. In other words, purchasing now rather than waiting a year may save you 3% on a home. To put it in perspective, that’s $6,000 on a $300,000 home. What could you do with an extra few thousand dollars in a year?
Save Money on Taxes
The mortgage interest you pay towards your balance each month lowers your taxable income at the end of the year. So, the more interest you pay each year, the higher your tax break will be. When you’re paying rent, all of that money goes towards your landlord or property management company without any financial benefit to you at all.
Have Your Own Home
The obvious benefit of purchasing a home now is simply that you will have your own home. You’ll be able to do what you want to the home as far as renovations and improvements, and you don’t have to ask someone for permission. Having your own home also means that you can sell it anytime you want if you want to upgrade to a larger home or need to move. In that case, you don’t have to get permission from your landlord to break your lease.
Interest Rates Are Low
The interest rate is the amount of money you’ll pay to have your mortgage loan. These fluctuate often as well, but not always with the current housing trends. For instance, while home pricing is going up right now, the interest rates on new homes are going down. This makes a monthly mortgage payment cheaper than renting in many areas.
With the cost of mortgage loans being as low as they are, now may be the best time to buy. Interest rates don’t follow an overall trend necessarily as housing tends to, so you never can predict completely when it’s going to go back up. The best idea is to buy when interest rates are low regardless of what home prices look like.
Grow Your Savings Account
Finally, talk to a realtor in Summerfield about how owning your own home can serve as a forced savings account. As you pay off your principal and interest each month, it may not feel a whole lot different than paying rent. However, if it’s helpful, picture the principle portion of the mortgage payment going towards another savings account labeled “equity.”
You’re building equity in your home and when it comes time to sell it, the home price will have appreciated so much that you’ll be in a better financial position than you were when you purchased the home, even if little else has changed besides.
These are just a few of the reasons why we and other financial and real estate experts think you should see a realtor in Summerfield about buying a home.