Every buyer wants to get into the market at just the right time. They want the lowest possible purchase price coupled with the best interest rates. In the past trying to have your cake and eat it too just wasn’t possible. However the current real estate landscape is as close as we have come to a perfect storm in years. The answer to the common question of “is now a good time to buy” is an emphatic “yes!” There are multiple factors in place that currently make buying a better option over renting. Here are four reasons why now is a great time to buy.
Low Interest Rates.We have heard for years that the record low interest rates will not last forever. Every time they have started to edge up they have quickly fallen back down. Currently interest rates are still near historic lows. When they eventually do go up the increase will happen fairly quickly. Interest rates shouldn’t be your only factor in buying but they directly impact your monthly payment. Lower rates give you the ability to buy more home for your dollar. In some cases a rate increase of just a point can significantly impact your monthly payment.
Increased Loan Programs. Over the past few years there has been a steady increase in the number of loan programs available. Many of these programs are aimed at attracting buyers. They offer the ability to put as little as 3% down on an FHA, VA and just recently conventional loans programs. Instead of having to come up with 20% down payment on top of closing costs and property taxes you can enjoy home ownership without having to deplete your savings.
Tax Benefits. One of the most underrated aspects of home ownership is the tax benefits you enjoy. In addition to being able to write off the loan interest payments you can also write off certain expenses, improvements and even the closing costs on your purchase. These tax breaks can impact your tax return by hundreds and even thousands of dollars.
Appreciation. It wasn’t that long ago that real estate was viewed as a means of long term forced savings. You purchased a house, lived there for thirty years and when you make the last payment you owned the property free and clear. If you wanted to sell you stood to make a sizable chunk of money that you could use to buy a smaller house or use the profits for retirement. While this thinking shifted along the way the principals still remain. Even though real estate is cyclical good properties tend to appreciate over time. As we have seen buying for appreciation alone isn’t always the best idea but it can’t be overlooked. For as little as a 3% down payment you can own a real, tangible asset that has the ability to significantly appreciate in value. It may seem like a ways away but ten, twenty and even thirty years will be here much quickly than you realize.
All of these factors make it a great time to own real estate. With the summer selling market right around the corner you should prepare yourself to act quickly. This perfect storm won’t stay in place forever.