Now might be the perfect time to purchase your dream home.
Owning your own home has always been part of the American dream. In the past few years, this dream seemed to have burst for many, along with the real estate bubble. Despite the recent gloom and doom over the state of the housing market, however, many people searching for homes right now are finding excellent deals. Leveraging power and affordability are greater now than they have been for years.
The good news for buyers is that it is still a buyer’s market. If you qualify for bank financing, or have cash readily available for a large down payment, it is a great time to buy a house. Purchasing a home now can prove to be a great investment over the long term, if you buy smart.
Here are some great reasons to buy:
- Get an inexpensive mortgage. Interest rates are historically low, so low that it is feasible to get a 30-year fixed loan at less than 4%. That makes a very appealing case for buying a home now. Such low mortgage rates may be scarce once inflation returns to normal. If you decide to purchase a house and rates drop in the future, you might be able to refinance if it makes sense financially.
- It is a good tax savings. You can deduct mortgage interest from your income tax and also deduct real estate taxes. When you choose to sell the home, you can get a tax break on capital gains if you itemize deductions. These tax benefits can even make home ownership less expensive than renting over the long term.
- You will appreciate appreciation. You may have read that houses are not the investments they once were, but they remain an effective hedge against inflation (since principal payments remain the same). Historically, in a “normal” market, a house can appreciate 3% a year.
- Great choices and excellent deals abound. There is still a glut of houses on the market from which to choose. The housing mix also includes short sales, foreclosure options and bank-owned properties, potentially offering you greater negotiating power. More availability means that you are more likely to fulfill your house wish list, such as being able to afford a four-bedroom home instead of three, or enjoying a larger yard, a two-car garage or multiple bathrooms.
- Build equity each month. If you are presently renting an apartment or a house, you may get frustrated when signing your rent check each month. Why feel like you are throwing money away when you could be applying money to a mortgage each month and building equity instead?
- You will have a place of your own. There is nothing like the feeling of pride you get from owning your own home. You can decorate your own place to suit your tastes – no more landlord limitations. In this economy, you can expect to find some deep discounts on home improvements and home furnishings. Go crazy and paint your walls a cherry red, or knock down a wall to create an open living space.
- Buy a home for Fido and Fluffy. Many pet lovers consider cats and dogs part of the family. However, renting and pets rarely mix, especially in some parts of the country. It is often difficult to find an apartment that accepts multiple cats or large-sized dogs. Another benefit of home-ownership is that a house usually has a yard, so you and your pets can romp around and get valuable exercise.
There are many good reasons to purchase a home now, as long as it makes sense financially for you. We invite to visit us at any of our eighteen UCCU branches to learn more how you can become a homeowner. You will be glad you did.