The housing market is heating up this summer. Now is the time to consider buying a home instead of waiting. Here are five excellent reasons why.
1. Prices Will Continually Rise
It makes no sense to wait any longer because the bottom in home prices has come and gone. Home values will continually appreciate for years to come. A poll was conducted by a distinguished panel of over 100 investment strategists, economists, and housing market analysts. The Home Price Expectation Survey projects that home values will appreciate between 11.8%, being the most pessimistic, and 26.7%, being the most optimistic.
2. Mortgage Interest Rates Are Expected to Increase
The National Association of Realtors, Fannie Mae, the Mortgage Bankers Association and Freddie Mac are all predicting that mortgage interest rates will be going up approximately three quarters of a percentage point over the next year. It shows that interest rates for a 30 year mortgage have already started to rise in Freddie Mac’s Primary Mortgage Market Survey.
Your monthly mortgage payment will be impacted by this increase in rates. Your housing expense will be more in a year from now if a mortgage is necessary to purchase your next home.
3. Buying a Home is a Great Investment
Owning a home is one of the best investments you can make. It’s a great potential in your personal wealth as it benefits your security and equity.
Unlike with rent, you actually stand a chance of seeing your money again when you make your monthly mortgage payments. The reason for that is with every payment, you’re building equity in your home. Generally speaking, if you stay in your property for at least 5 to 7 years, the costs of purchasing the home are more likely to be offset by accrued equity and increased housing value.
4. Tax Breaks
Being a homeowner means you are eligible to receive many tax benefits throughout the time you spend in your home.
5. Renting Is Expensive
Renting has become very expensive, with no signs of slowing down. According to CNN, rent has been steadily rising since 2000.
Bottom Line: Buying sooner rather than later could lead to substantial savings for you and your family.
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