Top 5 Reasons to Buy a Home Now!
There are several reasons why you should consider jumping into the real estate market and buying a home. Why pay someone else’s mortgage payments when you could be paying off your own? There are numerous loan programs available making it easier than ever to own a home. Here are the top 5 reasons to buy a home now!
- It is still cheaper to buy than it is to rent. According to Trulia, it is cheaper to buy in all 100 of the largest real estate markets, despite recent increases in price and rates. Across the nation, it is 37% cheaper to buy a home than rent, assuming you stay in your home at least 7 years. In order to tilt the market in favor of renting, rates would have to more than double to over 10% in 78 of the largest 100 real estate markets.
- Home prices are on the rise. The latest report by The Home Price Expectation Survey, which polled over 100 economists, investment strategists, and housing market analysts, found that appreciation in home values over the next 5 years was projected to be between 12.3% and 32.8%. Purchasing real estate is one of the safest long-term investments a person can make.
- Mortgage interest rates are also on the rise. 30-year fixed-rate mortgages have increased 1 full percentage point over recent historic lows according to Freddie Mac. Now is a good time to get into the market and lock into a really good interest rate and build equity. Increasing rates mean higher monthly mortgage payments. If you wait a year from now, your housing expenses will be more if a mortgage is necessary to purchase your next home.
- Big savings on next year’s taxes. As a homeowner, you can deduct the interest you pay on your mortgage, your property taxes, private mortgage insurance, loan points paid when you bought a home, and certain home-related expenses.
- Your mortgage is like a forced savings account. Every monthly mortgage payment you make, with the exception of the interest, is still yours, in the form of equity. Building equity in your home is a ready-made savings plan. When you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax. When renting, you are building up your landlord’s monetary value, instead of your own.