Similar to a large number of folks, you may have been browsing home listings online for a long time,…contemplating when to act. Home buying is a major investment with a wide range of considerations. The following is information on why purchasing a home in 2014 is a wise decision.
Home Ownership Is More Affordable Than Renting
If you itemize deductions on your tax return, you can deduct interest paid on your mortgage, property taxes, and if you qualify, mortgage insurance premiums. Most of the time, tax incentives make buying a home more affordable. When reviewing home costs, be sure to incorporate this benefit in your calculations.
There are two reasons for rising rental rates. First, a lot of people who lost their homes during the real estate slump resorted to renting. Secondly, the number of homes for sale is below demand so home buyers have turned to renting until they can purchase. This has elevated demand for apartments, resulting in higher rental rates. The gap in renting vs. buying is not that drastic right now.
Improving Real Estate Values
If you are watching for prices to bottom out prior to taking the leap to purchase a home, you have already missed it! In many regions, home prices are rising. Now is the best opportunity to purchase before it goes up further. As an added benefit, if values continue to improve, the value of your home will appreciate in a short amount of time.
Interest Rates Remain Low
Even though interest rates have increased during the last 12 months, they are still relatively low. They are expected to rise more this year, so it would be better to lock in a rate before that happens. Just a one percent change could have a big effect on your pre-approval amount.
Changes in the Mortgage Industry
Changes in the mortgage market continue. Qualification criteria are harsher, making it more difficult to qualify. Loam amounts are also dropping. Additional adjustments are expected for the end of this year, so it is best to start the mortgage process now.
Examining Why Purchasing A Home In 2014 Is A Wise Decision
During certain markets, it is better to rent than buy, but it currently does not appear to be one of them. The rates for renting, real estate values, interest rates, and mortgage rules imply that if you would like to to purchase a home, now is the time to do it! When reviewing why purchasing a home in 2014 is a wise decision, do not forget that there are several personal aspects of your situation to consider. This article does not cover them. For additional guidance, contact Pedro Teixeira at FIT Credit.