Like many folks, you may have been browsing properties for sale on the Internet for many months,…trying to decide the proper time to buy. Purchasing a property is a major undertaking with several considerations. Here are details on why you should buy a home in 2014.
Benefits of Renting
If itemizing deductions on a tax return, you may deduct home loan interest, property taxes, and if you qualify, mortgage insurance premiums. Usually, tax breaks make buying a property more affordable. When comparing living expenses, do ot forget to incorporate this factor in your calculations.
Rental Rates Have Increased
There are two reasons for rising rental costs. First, many home owners who gave up their properties during the real estate downturn were forced to rent. Secondly, for sale inventory has been low so home buyers have turned to renting until they can buy. This has increased demand for rentals, resulting in an increase in rental rates. The gap in the cost to rent versus purchase is much less as a result.
A Better Real Estate Environment
If you have been hoping for prices to hit rock bottom before getting off the fence, you have already missed it! In most markets, home prices are inclining. You might want to purchase a property now before it goes up any further. As a bonus, if prices continue to improve, your equity will appreciate quickly.
Interest Rates May Change
Even though home loan rates have risen over the last year, they are still relatively low. They may rise more in the months to come, so it might be better to act before that happens. Just a half point change will dramatically drop your pre-approval amount.
Changes in the Mortgage Rules
There continues to be changes in the mortgage market. Qualification rules are harsher, making it more difficult to qualify. Loan limits are also decreasing. Additional changes are planned for the end of this year, so it is easier to apply for a home loan now.
Analyzing Why You Should Buy A Home In 2014
During certain markets, it is best to rent than buy, but this market does not appear to be one of them. The cost of renting, real estate values, interest rates, and mortgage rules make it clear that if you have plans to purchase a property, now is the time to do it! When thinking about why you should buy a home in 2014, remember that there are many personal things to weigh. This blog does not cover that. For expert advice, contact Bradford and Darleen Pratt at REMAX on the Charles.